Việt Nam, Japan sign exchange of notes for ODA loans to support green transition

Việt Nam, Japan sign exchange of notes for ODA loans to support green transition

The funding will support three priorities – green growth and climate adaptation, disaster-resilient rural development and climate-adaptive infrastructure in northern mountainous regions, especially for ethnic minority communities.

Deputy Minister of Finance Trần Quốc Phương (left) and Japanese Ambassador to Việt Nam Itō Naoki sign the exchange of notes on behalf of the two governments. — VNA/VNS Photo

Việt Nam and Japan on March 20 signed an exchange of notes on concessional loans worth about 90 billion yen (roughly US$609 million) for three programmes and projects, marking a step forward in bilateral development cooperation.

The document was signed by Deputy Minister of Finance Trần Quốc Phương and Japanese Ambassador to Việt Nam Ito Naoki, representing their respective governments.

The funding will support three priorities – budget support for green growth and climate change adaptation, disaster-resilient rural development and climate-adaptive infrastructure serving production in northern mountainous regions, particularly for ethnic minority communities.

Phương said the agreements reaffirm Japan’s position as Việt Nam’s largest bilateral donor and reflect strong interest in deepening the Comprehensive Strategic Partnership. He added that the deal helps translate high-level commitments into a new-generation official development assistance (ODA) model focused on green transition and climate resilience.

The projects are expected to contribute to socio-economic development, especially by improving essential infrastructure in the northern midland and mountainous provinces, which remain among the country’s most disadvantaged areas.

A 50-billion-yen policy loan under the general budget support framework for green growth and climate adaptation follows earlier cooperation supporting post-pandemic recovery, demonstrating Japan’s continued confidence in Việt Nam’s fiscal management and policy implementation.

Ambassador Ito Naoki said Japan backs Việt Nam’s reform drive and hopes its ODA will be channelled into innovation, semiconductors, green transition and digital transformation, supporting the country’s growth targets for 2026-30.

The newly signed projects are expected to lay a foundation for advancing a new-generation ODA cooperation model between the two countries. 

Bizhub