Japan provides US$422 million ODA loans to Vietnam
The loans enable Vietnam to boost its recovery strategies adopted by the National Assembly in early 2022.
The Government of Japan has continued providing official development assistance (ODA) loans worth JPY61 billion (US$422 million) for socio-economic recovery in Vietnam post-pandemic.
| Overview of the signing of loan agreements held in Hanoi on July 4. Photos: JICA |
The three loans signed in Hanoi on July 4 by the Japan International Cooperation Agency (JICA) and the Government of Vietnam in Hanoi include an ODA loan JPY50 billion ($346 million) for Socio-economic Recovery and Development of Vietnam, JPY6.2 billion ($42 million) for the Public Transport Infrastructure Improvement in Binh Duong Province, and JPY4.7 billion ($32.8 million) for Upgrading Infrastructure for Agricultural Development in Lam Dong Province (Phase 1).
The signing of the loan agreements is another important step in commemorating the 50th anniversary of Japan and Vietnam’s diplomatic relations.
Accordingly, the General Budget Support Program for Socio-economic Recovery and Development of Vietnam Post Pandemic aims at providing the a high concessional funding for implementation of the socio-economic recovery and development program in the post Covid-19 period which was passed by the National Assembly in early 2022.
Meanwhile, the Public Transport Infrastructure Improvement Project in Binh Duong Province is necessary for the locality as it has seen a significant increase of population and rapid urbanization.
This project will alleviate traffic congestion and enhance connectivity among cities by improving traffic infrastructure between Binh Duong New City and Suoi Tien Terminal of the Ho Chi Minh City Urban Railway Line, contributing to the economic and social development of Binh Duong province.
The project will contribute to achieving SDGs (Sustainable Development Goals) Goal 9 (Industry, Innovation and Infrastructure).
| Vietnam's Deputy Minister of Finance Vo Thanh Hung at the signing ceremony. |
The agricultural infrastructure development project in Lam Dong enabled the Central Highlands province to become an advanced regional agricultural center. Lam Dong province has excellent natural resources for the growth of agriculture.
Regarding agriculture cooperation, the Medium and Long-term Vision for Vietnam-Japan Agricultural Cooperation (Phase 1: 2015-2019, Phase 2: 2020-2024) has been established to strengthen food value chains in Vietnam.
As Lam Dong is one of the vision’s model areas, the vision outlines specific initiatives to encourage the development of agricultural infrastructure.
The Project for Upgrading Infrastructure for Agricultural Development in Lam Dong Province
(Phase 1) has been formulated to initially transform the agricultural sector in Lam Dong province through the improvement of infrastructure, including a road network (for enhancing the transportation of agricultural products), irrigation system and Flower Collection Center for the overall goal of improving the income of farmers and industrialization of agricultural sector.
This project will contribute to achieving SDGs - Goal 2 (Zero Hunger) and Goal 12 (Responsible Consumption and Production). The project is a significant model for agricultural cooperation between Vietnam and Japan.
| Chief Representative of JICA Vietnam Sugano Yuichi at the event. |
