Japan pledges $812mn in fresh ODA to Vietnam
Japan pledges $812mn in fresh ODA to Vietnam
The Japanese government will provide Vietnam with more than 95 billion yen in ODA (official development assistance) for Vietnam on improve its eco-social infrastructure development.
The US$812 million loan is the first batch of a total of 300 billion yen ($2.56 billion) Japan has pledged for Vietnam in the fiscal year ending March 2016, according to the Vietnamese government website.
Diplomatic notes on the ODA grant was signed in Hanoi on Friday by Vietnamese Minister of Planning and Investment Bui Quang Vinh and Japanese Ambassador to Vietnam Hiroshi Fukada.
The latest batch of ODA loan from Japan will be allocated to four key infrastructure projects, including the north-to-south expressway, the international port in the northern city of Hai Phong, and the fourth stage of a climate change program, according to the Vietnamese minister.
Vietnam’s Ministry of Finance and the Japan International Cooperation Agency will sign specific loan deals for each of the projects, according to the notes.
Japan’s ODA to Vietnam dropped to below 100 billion yen ($854.7 million) in fiscal 2014, but the two countries’ governments have agreed to increase it to 300 billion yen for fiscal 2015.
The Japanese 2015 fiscal year runs from April 1, 2015 to March 31, 2016.
Ambassador Fukuda said besides the first batch of 95 million yen, three more projects will receive the ODA funding by the end of March to complete the 300 billion yen target.
As a key partner of Vietnam, Japan hopes the Southeast Asian country will use the ODA loan effectively, accelerating the infrastructure development, as well as improving personnel training and domestic production ability, according to the ambassador.
Japan has offered some 2.6 trillion yen ($22.22 billion) in ODA to Vietnam since it resumed the funding in 1992, according to the Vietnam News Agency.
