(#゜Д゜)/英字新聞
Public-private approach key to winning intl deals
What steps can Japanese companies take to improve their chances of winning contracts for infrastructure development projects in other Asian countries, and that could also be used to grow Japan's economy?
To secure orders amid tough international competition, cooperation between the public and private sectors is indispensable.
At the end of last year, South Korean companies won contracts to build nuclear power plants in the United Arab Emirates, beating a consortium of Japanese and U.S. companies that included Hitachi, Ltd. In addition, a Russian firm is believed to have won contracts to construct nuclear plants in Vietnam.
For Japanese firms, these two defeats were stinging. In the competition for the UAE projects, South Korea's strategy was noticeably adroit.
South Korean President Lee Myung Bak led national government moves to fully back the consortium of South Korean firms.
In addition to offering drastically low prices, the South Korean consortium proposed it not only construct the nuclear plants but also implement a package of other services, such as operating and maintaining the plants, and training specialists for the plant.
South Korea formulated an export strategy last month in which it set out a plan to secure orders to build a total of 80 nuclear power plants around the world by 2030. The plan aims to use foreign demand as a way of growing South Korea's economy.
===
Growing infrastructure market
The global infrastructure development market is expected to grow rapidly. Worldwide demand for infrastructure construction, including power-generation facilities, roads, and air and sea ports, is estimated to total 40 trillion dollars (3.7 yen quadrillion) from now until 2030.
For instance, U.S. President Barack Obama has announced a project to develop a high-speed train system in the United States, as has the Brazilian government in its country. Such moves put the construction of railroads firmly under the spotlight.
Since Japan's population is decreasing, it can no longer rely on domestic demand alone to keep its economy growing. It therefore needs to fight more aggressively to win infrastructure development contracts abroad and beat South Korea and other nations. Having won such contracts, Japan should then capitalize on them to bolster its economic vitality.
===
No plan for winning projects
The government provided a basic outline of its growth strategy at the end of last year, but made no reference to measures aimed at winning infrastructure development project orders abroad. The government should hammer out such measures--which should surely be superior to those of Japan's rivals--when the details of the strategy are decided this summer.
This nation, however, already has model projects of its own. It is giving official development assistance to India for the construction of a freight railway line connecting Delhi and Mumbai and the development of related infrastructure, including an industrial complex, by Japanese companies. The Japan Bank for International Cooperation has decided to provide a loan for the project.
Another Japan-led development project is taking place in Indonesia.
Both examples show the importance of building a cooperative framework between the public and private sectors.
In that sense, the Comprehensive Asian Development Plan advocated by Prime Minister Yukio Hatoyama last autumn is of great significance. The prime minister proposed a system under which Japan will offer infrastructure development advice to its Asian neighbors beginning at the planning phase. This approach will greatly enhance Japanese firms' chances of winning project orders.
The government also needs to work on developing the financial market's capabilities to attract funds in the Asian region so that the huge sums of money needed to fund the construction of infrastructure can be raised.
What steps can Japanese companies take to improve their chances of winning contracts for infrastructure development projects in other Asian countries, and that could also be used to grow Japan's economy?
To secure orders amid tough international competition, cooperation between the public and private sectors is indispensable.
At the end of last year, South Korean companies won contracts to build nuclear power plants in the United Arab Emirates, beating a consortium of Japanese and U.S. companies that included Hitachi, Ltd. In addition, a Russian firm is believed to have won contracts to construct nuclear plants in Vietnam.
For Japanese firms, these two defeats were stinging. In the competition for the UAE projects, South Korea's strategy was noticeably adroit.
South Korean President Lee Myung Bak led national government moves to fully back the consortium of South Korean firms.
In addition to offering drastically low prices, the South Korean consortium proposed it not only construct the nuclear plants but also implement a package of other services, such as operating and maintaining the plants, and training specialists for the plant.
South Korea formulated an export strategy last month in which it set out a plan to secure orders to build a total of 80 nuclear power plants around the world by 2030. The plan aims to use foreign demand as a way of growing South Korea's economy.
===
Growing infrastructure market
The global infrastructure development market is expected to grow rapidly. Worldwide demand for infrastructure construction, including power-generation facilities, roads, and air and sea ports, is estimated to total 40 trillion dollars (3.7 yen quadrillion) from now until 2030.
For instance, U.S. President Barack Obama has announced a project to develop a high-speed train system in the United States, as has the Brazilian government in its country. Such moves put the construction of railroads firmly under the spotlight.
Since Japan's population is decreasing, it can no longer rely on domestic demand alone to keep its economy growing. It therefore needs to fight more aggressively to win infrastructure development contracts abroad and beat South Korea and other nations. Having won such contracts, Japan should then capitalize on them to bolster its economic vitality.
===
No plan for winning projects
The government provided a basic outline of its growth strategy at the end of last year, but made no reference to measures aimed at winning infrastructure development project orders abroad. The government should hammer out such measures--which should surely be superior to those of Japan's rivals--when the details of the strategy are decided this summer.
This nation, however, already has model projects of its own. It is giving official development assistance to India for the construction of a freight railway line connecting Delhi and Mumbai and the development of related infrastructure, including an industrial complex, by Japanese companies. The Japan Bank for International Cooperation has decided to provide a loan for the project.
Another Japan-led development project is taking place in Indonesia.
Both examples show the importance of building a cooperative framework between the public and private sectors.
In that sense, the Comprehensive Asian Development Plan advocated by Prime Minister Yukio Hatoyama last autumn is of great significance. The prime minister proposed a system under which Japan will offer infrastructure development advice to its Asian neighbors beginning at the planning phase. This approach will greatly enhance Japanese firms' chances of winning project orders.
The government also needs to work on developing the financial market's capabilities to attract funds in the Asian region so that the huge sums of money needed to fund the construction of infrastructure can be raised.
コメント 0