Japan leads China in SE Asian infrastructure funding

• Khat Leakhena
• 11 September 2019
• Construction Focus
• 4022 Views

Despite China’s deep pockets and high-profile infrastructure projects in SE Asia via its Belt & Road Initiative, Japan continues to outspend its neighbour on large-scale regional projects.

According to data gathered by Fitch Solutions and reported in Bloomberg, Japanese-backed projects in Southeast Asia’s six biggest economies – Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam – are valued at US$367bn, while China has spent US$255bn.

More than half of Japan’s investment is focused toward Vietnam, including a $58.7bn high-speed railway between Hanoi and Ho Chi Minh City. Chinas investments are spread more widely, though Indonesia is absorbing 36%, of China’s total investments in the six countries, including the Kayan River hydropower plant, valued at $17.8bn.

By number of projects, Japan leads in the 10-country region, backing 240 infrastructure projects, with China funding 210.

 

• Projects Development