Japan, Vietnam agree on nuke cooperation, eye rare earth development

HANOI (Kyodo) -- Japan and Vietnam agreed Sunday to work toward the early signing of a bilateral nuclear cooperation pact, paving the way for Japanese firms to export nuclear power generation technologies to the fast-growing economy.

The accord was reached by Japanese Prime Minister Naoto Kan and his Vietnamese counterpart Nguyen Tan Dung during bilateral talks in Hanoi after a series of summits involving the Association of Southeast Asian Nations, of which Vietnam is a part, and its dialogue partners including Japan.

The two leaders welcomed the conclusion of negotiations on the nuclear cooperation treaty and expressed hope that their countries will sign the treaty at an early date, according to a joint statement they released.

The treaty sets a legal framework for the peaceful use and transfer of nuclear power-related technologies, materials and equipment.

Vietnam also decided to award to Japan contracts to build two of four nuclear power plants the country plans to construct by the early 2020s to deal with its power shortage.

As part of economic cooperation between the two countries, Kan also conveyed Japan's intention to provide yen loans worth about 79 billion yen for port and other infrastructure projects in Vietnam, the statement said.

Ahead of their talks, Kan said at a press conference Saturday that enhancing bilateral ties is a way to boost economic growth for both Japan and Vietnam.

"Cooperation in electricity and railways, which are extremely important for Vietnam, and resources (development), which is necessary for our nation, will be positive for Vietnam and Japan," Kan said.

The Japanese and Vietnamese premiers also agreed during Sunday's talks that the governments of their countries will promote joint research and development on rare earths -- resources vital for making high-tech products.

Japan's move to join hands with Vietnam on developing rare earths reflects its efforts to veer away from its heavy reliance on China for such resources following China's de facto embargo on rare earth exports amid a diplomatic spat with Tokyo.

The row resulted in countermeasures including restrictions of rare earth shipments from China, which accounts for about 90 percent of the global output of rare earth metals. China has denied imposing any embargo.

(Mainichi Japan) October 31, 2010