Vietnam seeks Japan’s ODA loans for strategic traffic projects
Vietnam seeks Japan’s ODA loans for strategic traffic projects
Vietnamese Prime Minister Pham Minh Chinh has proposed that Japan provide Vietnam with new-generation official development assistance (ODA) loans for its key traffic infrastructure projects, including a national express railway, among other cooperation suggestions.
Vietnam’s Prime Minister Pham Minh Chinh (L) shakes hands with his Japanese counterpart Kishida Fumio before their talks in Tokyo, Japan, December 16, 2023. Photo: Vietnam News Agency |
PM Chinh made the proposal at his talks with his Japanese counterpart Kishida Fumio on December 16 in Tokyo, as part of his trip to Japan for the Commemorative Summit for the 50th year of ASEAN-Japan Friendship and Cooperation.
Chinh suggested that Japan supply new-generation ODA loans – which are offered at an extreme low rate – for strategic infrastructure development projects in Vietnam, such as the North-South high-speed railway project, urban railways, supporting industries, new industrial zones, climate change adaptation, digital transformation, green transition, and healthcare, among others.
Among these projects, the national express railway is expected to be started in 2030 and completed in 2045, at an estimated cost of US$70 billion, according to Thoi Bao Kinh Te Viet Nam (VnEconomy) newspaper.
Upon reviewing the substantial progress in numerous key cooperation projects between the two countries in recent years, both PMs expressed their appreciation for the significant milestone achieved.
They noted that the total value of Japan's ODA loans to Vietnam in 2023 has surpassed 100 billion yen ($703.3 million), marking the first time this threshold has been reached since 2017.
Currently, Japan holds the position of the largest ODA lender to Vietnam.
According to Dau Tu (Investment) newspaper, citing the Japan International Cooperation Agency (JICA), the total loan amount extended by Japan to Vietnam has reached approximately 3,000 billion yen ($21.1 billion) since the initiation of ODA grants in 1954.
PM Chinh urged Japan to facilitate Vietnamese businesses’ engagement in the global supply chains of Japanese businesses, particularly in automaking, electronics, medical equipment, and textiles and garments, among others.
He called on both sides to streamline inspection procedures to make conditions favorable for Vietnamese pomelos to enter the Japanese market and for Japanese grapes to earn a market share in Vietnam.
Both sides agreed to continue strengthening economic links between the two countries, promoting cooperation to ensure economic security.
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| A meeting between the Vietnamese (L) and Japanese delegations led by Vietnam’s Prime Minister Pham Minh Chinh and his Japanese counterpart Kishida Fumio, respectively, in Tokyo, Japan, December 16, 2023. Photo: Vietnam News Agency |
They agreed to establish a joint coordination group between the two governments to promote the progress and effectiveness of a number of economic projects being implemented between the two countries, including the Nghi Son Refinery and Petrochemical Complex in Thanh Hoa Province, north-central Vietnam.
PM Kishida said Japan would continue supporting Vietnam to successfully realize industrialization and modernization, build an independent and self-reliant economy, and further expand international integration.
He promised to promote cooperation with Vietnam in energy transition and emission reduction through the Asia Zero Emission Community (AZEC) initiative launched by Japan.
The Japanese leader agreed with his guest on boosting collaboration in human resource training, cultural and people-to-people exchanges, cooperation between localities, and tourism development.
Chinh suggested that Japan continue relaxing requirements for Vietnamese citizens entering Japan and move toward visa exemption for them in the future.
Kishida told his guest that Vietnamese human resources, including high-quality workers and skilled interns, are indispensable for Japan's socio-economic development.
Both parties reached an agreement to conduct examinations in the near future to identify and select Vietnamese apprentices with specific skill sets.
After the talks, the two PMs witnessed the exchange of ODA cooperation documents, including the fourth loan agreement for Ho Chi Minh City’s urban railway construction project, the Japan Development Scholarship program, and the equipment supply project worth nearly $300 million for Hanoi-based K Hospital.
This year marks the 50th anniversary of Vietnam-Japan diplomatic relations, which were upgraded to a comprehensive strategic partnership last month.
Presently, Japan not only holds the top position as the leading provider of ODA to Vietnam but also secures the second spot globally in terms of labor cooperation with the Southeast Asian nation.
Japan holds the third position among the countries and territories investing in Vietnam and comes fourth among the world's top countries engaged in trade with Vietnam, according to news site VnExpress.
