Timor-Leste's Japanese Investment and the Manatuto Shipbuilding Project
In a significant development for Timor-Leste’s industrial and economic landscape, Tsuneishi Shipbuilding Co., Ltd., a prominent Japanese shipbuilding company, has advanced its investment plans in the Manatuto municipality. On June 10, 2025, representatives from Tsuneishi, accompanied by the Japanese Ambassador to Timor-Leste, Tetsuya Kimura, met with Prime Minister Kay Rala Xanana Gusmão to provide an update on the progress of the shipyard construction project in Laleia Administrative Post, Manatuto.
Tsuneishi has already established its local office in Timor-Leste and employed 42 Timorese nationals, including 37 ship design engineers. Notably, some of these employees have been engaged since last year, and the company is actively investing in human capital development. Ten workers are currently undergoing training at Tsuneishi’s headquarters in Japan, with an additional 11 scheduled to begin training in July 2025. This training initiative underscores the company’s commitment to building local expertise and sustainable employment.
The project is currently in the feasibility study phase, focusing on identifying the optimal site for the shipyard. Following this, detailed negotiations with the Timorese government will pave the way for construction and operational phases. The government, represented by the Ministry of Transport and Communications, has expressed strong support and pledged to facilitate the project’s implementation, emphasizing its strategic importance for national development.
The planned shipyard is expected to be a transformative industrial hub, potentially employing up to 4,000 Timorese workers and producing 10 to 12 vessels annually. Beyond shipbuilding, the project envisions ancillary infrastructure development, including schools, hotels, and hospitals, contributing to broader socio-economic growth in Manatuto.
This investment aligns with Timor-Leste’s broader economic diversification strategy as it prepares for ASEAN membership in October 2025. The collaboration with Tsuneishi not only brings capital and technology but also fosters skills transfer and local capacity building, critical for sustainable industrialization. The Japanese government’s diplomatic support further reinforces the bilateral partnership, highlighting the project’s role in strengthening economic ties between Timor-Leste and Japan.
In summary, the Tsuneishi shipbuilding project represents a landmark foreign direct investment that promises to catalyze industrial growth, create substantial employment, and enhance Timor-Leste’s integration into regional maritime economies. The government’s proactive engagement and the company’s commitment to local workforce development position this initiative as a cornerstone of Timor-Leste’s emerging blue economy and industrial future.