Japan’s JFE Engineering acquires 3.87% stake in Vietnam’s water firm

However, the amount of the deal has not been disclosed in a statement released by the Japanese infrastructure firm, which stated on Friday that it signed an agreement to form a business alliance with Ho Chi Minh City Stock Exchange-listed BIWASE. 

The Japanese firm was said to have spent 900 million JPY ($8.6 million) to acquire a the stake, according to Nikkei Asian Review. 

To cement the partnership, BIWASE issued new shares to JFE, allowing the Japanese company to hold a majority stake in the Vietnamese firm.  

The move is part of JFE's ongoing effort to increase its presence in the Southeast Asian nation.

“We will cooperate with BIWASE on improving facilities capacity in the water supply sector,” among other business fields, to take advantage of strong demand caused by high economic growth in the region, JFE said in the statement.

BIWASE is a leading water supply and environmental service company in Vietnam having eight water treatment plants with a capacity 396,500 cubic meters of water and a waste disposal site with a capacity: 3,000 tons of waste per day in Binh Duong province.

In Vietnam, JFE Engineering Corporation has delivered Hoa Lac wastewater treatment plant with capacity: 36,000 cubic meter a day.

JFE Engineering will expand EPC service for water and wastewater treatment business as well as try to participate in O&M business for these areas to achieve the Sustainable Development Goal 6: Ensure availability and sustainable management of water and sanitation for all in Asia.