Japanese defense companies are increasingly exploring opportunities in South East Asia. One of the latest to make inroads in the market is Mitsui Engineering & Shipbuilding (MES), which entered an agreement with the maritime division of Malaysian investment holding group T7 Global Berhad in order to co-operate on building ships for the Vietnam People’s Navy (VPN) and the Vietnam Coast Guard (VCG).
T7 Marine, a wholly-owned subsidiary of T7 Global, is involved in marine construction and infrastructure works. MES is involved in construction and engineering of state-of-the-art ships such as bulk carriers, tankers, LNG carriers, naval vessels, and patrol boats.
According to the Memorandum of Understanding signed by the two companies, which will run for three years with the option to be extended, the parties will leverage each other’s experience and expertise in exploring shipbuilding opportunities in Vietnam and look to secure new business contracts.
A possible area of collaboration will be building patrol ships, although specific locations for shipbuilding projects has yet to be agreed. MES currently does not have a shipbuilding facility in Vietnam.
(Source: Janes; T7 Global Berhad)