The Japan International Cooperation Agency (JICA) has sought ways to intensify infrastructure investment in Vietnam with financing tool called private sector investment finance. 
JICA's seminar on private sector investment financing in HCM City on August 30. Photo: JICA
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JICA has introduced its financing facility called “Private Sector Investment Finance” (PSIF) which is an alternative financing tool to JICA’s traditional ODA financing to support the infrastructure development with the participation of the private sector, the agency said in a recent report.
In Vietnam, several projects have been supported by PSIF, including the construction of a private vocational training school by Esuhai in HCM City and a lease-type industrial complex in Nhon Trach III Industrial Park in the southern province of Dong Nai; the enhancement of a coffee value chain to support smaller holder farmers and farm management by Olam, co-financing with the Asian Development Bank.
Esuhai: Ho Chi Minh City-based Esuhai Co., Ltd has become the first private firm to receive ODA loan from JICA to build up the Vietnam-Japan Centre for Technological Workforce Training & Development.
Olam: Singapore-based agribusiness group Olam International Limited (OIL) has secured US$163 million in financing from the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA), including $80 million in loans for its coffee subsidiary in Vietnam.
As of end-January 2019, JICA’s PSIF portfolio in Vietnam included ACB Industrial Human Resources Development Project, VietinBank Utility Management for Industrial Parks and Water Supply Project, BIDV Rental Factory Development Project for SMEs, and Coffee Value Chain Enhancement Project, the agency said on its website.
In a latest move, JICA, in cooperation with the municipal Department of Planning and Investment (DPI), last week held a seminar on JICA’s private sector investment financing and public-private partnership (PPP) infrastructure investment in HCM City.
The event is part of a survey focused on infrastructure and public services investment opportunities in HCM City which covers transportation (logistics facilities, etc.), environment (waste treatment facilities, etc.), healthcare (hospitals, etc.), and education and culture (sport facilities etc.).
In the seminar which were attended by over 60 interested companies from Japan and Vietnam,
DPI presented infrastructure investment opportunities in the city while JICA’s consultant team reported key findings of the survey, including a short list of potential projects that would be attractive to potential investors.
In addition, representatives of the city’s Department of Natural Resources and Environment,
Nguyen Tri Phuong Hospital and Pham Ngoc Thach Medical University Hospital also shared their infrastructure development plans calling for investment.
