According to News Agency of Vietnam (VNA) in Tokyo, the Japanese Saibu Gas Company (Saibu Gas) has announced its decision to invest in a subsidiary of Vietnam Gas Corporation (PV GAS).
Saibu Gas informed that at the first the company decides to invest in oversea gas markets and has reached an agreement to own 21% of the shares in the Low Pressure Gas Distribution Joint Stock Company (PVGD) under PV GAS, with an undisclosed investment amount but may be up to billions of Yens (equivalent to tens of millions of dollars).
The participation of Saibu Gas is expected to increase the value of PVGD and provide more business and technology experiences for Vietnamese partner.
As planned, the share transfer will be completed in the January – February of 2020.
PVGD as a company supplies gas through the pipeline system for industrial zones in Hanoi and Ho Chi Minh City. The company has a total capital of about 899 billion VND, a turnover in December 2018 of 8,141 billion VND (equivalent to 38.5 billion Yens).
In 2017, the Tokyo Gas, a largest gas distribution company in Japan bought 24.9% of shares of PVGD
According to VNA, with the appearance of Japanese investors, PVGD expects to increase the number of industrial customers in the near future.
At present, Vietnam is a overpopulated market and has the most impressive economic growth in Asia, that lead to high demand for energy, especially liquefied natural gas (LNG). This will be a great opportunity for gas supply enterprises in the world in general and Japan in particular to invest in Vietnam market.
Saibu Gas company has headquarter in Fukuoka, and supplies fuel to the entire northern part of Kyushu Island in Japan.