Bac Ninh Province Moves to Abolish MoU with Mitsubishi for High-Rise Warehouse Project
By Hai Yen
Wed, September 24, 2025 | 8:47 AM GMT+7
Bac Ninh province, a key economic hub in northern Vietnam, is in the process of seeking official approval from the Ministry of Foreign Affairs to abolish a Memorandum of Understanding (MoU) that was signed with Japan’s Mitsubishi Estate back in November 2021. This decision marks a significant shift in the planned development of a high-rise warehouse project that had initially promised to enhance the local industrial landscape.
The Genesis of the Project
The MoU was ratified during a significant official visit by Prime Minister Pham Minh Chinh to Japan. The agreement outlined an exploration of cooperation between Mitsubishi Estate, a subsidiary of Mitsubishi Group, and Vietnam-based Western Pacific to set up a multi-floor smart warehouse at the Yen Phong 2A Industrial Park. This was seen as a promising investment opportunity that had the potential to bolster the province’s economic standing.
In February 2022, another follow-up MoU was sealed between One MEA Holdings, a subsidiary of Mitsubishi Estate, and Western Pacific. This agreement aimed to establish a joint venture for the warehouse project, further indicating a strong commitment to realizing the vision laid out in the first memorandum.
Shifts in Commitment
However, the project’s momentum waned when One MEA Holdings failed to adhere to the agreed investment plan. This setback led both parties to come to a mutual agreement to dissolve their cooperation. In a noteworthy development, Western Pacific has already returned the deposit paid by the Japanese firm, indicating a clear conclusion to their engagement.
Considering these developments, the Bac Ninh People’s Committee formally proposed to void the MoU with both Mitsubishi Estate and Western Pacific, signaling a decisive shift in the province’s approach to foreign investment and collaboration.
Background on Western Pacific
Western Pacific, headed by the well-known CEO Tran Anh Vuong—popularly known as “Shark Vuong” from Vietnam’s TV series Shark Tank—has played an integral role in the Yen Phong II-A Industrial Park since September 2019. The firm was tasked with preparing planning and investment proposals for this expansive 151-hectare industrial park, underscoring its commitment to the region’s development. To date, the company has invested approximately VND 275 billion (around $10.4 million) into the project, showcasing its financial dedication to the local industry.
Bac Ninh’s Economic Landscape
Bac Ninh has gained a reputation as a hotspot for foreign direct investment (FDI), particularly due to its strategic location and robust infrastructure. The province has been home to several significant multinational enterprises, including Samsung, which operates one of its largest factories in the area. According to the Ministry of Finance, Bac Ninh attracted 245 foreign-invested projects in the first eight months of this year, totaling over $4.68 billion in registered investment capital—an impressive year-on-year increase of 4.8%. The province aims to draw $6 billion in investment by 2025, further solidifying its status as one of Vietnam’s FDI leaders.
As of now, Bac Ninh has successfully hosted 3,363 FDI projects, accumulating a staggering total of $47.6 billion in investment—establishing it as a premier destination for global investors looking to tap into the burgeoning Vietnamese market.
Conclusion
In summary, Bac Ninh province’s decision to dissolve the MoU with Mitsubishi Estate is a clear reflection of the dynamic nature of investment in Vietnam. As local authorities seek to refine their approach to foreign collaboration, stakeholders and potential investors will be watching closely to see how this move will shape future projects in the region.