Japan extends ¥50 billion loan for green transformation programme

Japan extends ¥50 billion loan for green transformation programme

The Japan International Cooperation Agency (JICA) on March 30 signed a ¥50 billion loan agreement with Vietnam to provide official development assistance for its green transformation programme and climate change adaptation.

Deputy Minister of Finance Tran Quoc Phuong and Kobayashi Yosuke, chief representative of JICA Vietnam Office

The signing ceremony was attended by Deputy Minister of Finance Tran Quoc Phuong and Kobayashi Yosuke, chief representative of JICA's Vietnam office.

The programme aims to support the Vietnamese government in advancing green growth and green transformation while strengthening climate resilience through a combination of policy dialogue and financial assistance. It is expected to contribute to macroeconomic stability and boost sustainable development amid the increasingly severe impacts of climate change.

Currently, more than 2,000 Japanese enterprises are operating in Vietnam, making the country one of the most attractive destinations for business expansion in the ASEAN region.

With financial support and policy dialogue, the project will help develop institutional frameworks for financial and investment incentives supporting green transformation and green growth; the formulation of policies to implement the country’s Nationally Determined Contributions (NDCs); and the advancement of climate adaptation measures, thereby contributing to the achievement of Vietnam’s climate targets.

Based on key policy documents such as Vietnam’s NDCs and the national green growth strategy, issued in 2021, the government of Vietnam and JICA will develop a policy matrix built around these three pillars and roll out financial support to strengthen climate-related policies. The loan is expected to be fully disbursed by the end of 2026.

VIR