14:28 | 07/03/2016 Investment
(VEN) - According to the Ministry of Planning and Investment, since Japan restarted its official development assistance (ODA) for Vietnam in 1992, it has always been Vietnam’s largest bilateral ODA donor. The Japanese government-pledged ODA for the country has reached JPY2.6 trillion, or more than US$22 billion.
The governments of Vietnam and Japan sign notes on Japan’s first-batch ODA for Vietnam for the 2015 fiscal year
Japanese Ambassador to Vietnam Hiroshi Fukada said that the Japanese ODA fiscal year usually starts in April of the previous year and finishes in March of the subsequent year. Similarly, the 2015 Japanese ODA fiscal year started in April 2015 and will finish in March 2016. During this year, it is expected that the Japanese government will provide more than JPY300 billion, or US$2.5 billion, for Vietnam, a record high so far.
The governments of Vietnam and Japan signed a diplomatic note on January 16 in Hanoi, regarding more than JPY95 billion worth of Japan’s first-phase ODA for the 2015 fiscal year for Vietnam to develop four programs and projects including building the Da Nang-Quang Ngai section of the North-South Expressway at a total cost of JPY30 billion, building infrastructure of the Lach Huyen Port in Hai Phong at a total cost of JPY32.287 billion, building a bridge and roads in the Lach Huyen Port area at a total cost of JPY22.88 billion, and implementing Cycle 4 of the Support Program to Respond to Climate Change at a total cost of JPY10 billion.
At the signing ceremony Vietnamese Minister of Planning and Investment Bui Quang Vinh said that to realize the commitment of more than JPY300 billion worth of Japanese ODA for the 2015 fiscal year, Vietnamese and Japanese agencies are completing procedures for signing the project before the end of the fiscal year, March 31, 2016. He also said that many projects would receive Japanese ODA such as the project to improve the water environment in Ho Chi Minh City and the Thai Binh thermopower project.
The ambassador said that the two countries experienced a hard time in 2014 when negative cases were found related to the Hanoi Urban Railway Project. For this reason, Japanese ODA for Vietnam dropped sharply to only more than JPY100 billion in 2014.
For the year 2015, the Japanese government increased its committed ODA to more than JPY300 billion in recognition of the importance of the Vietnamese-Japanese relations and in order to implement the Japanese government’s previous commitment.
According to Bui Quang Vinh, Japanese ODA landmarks are seen everywhere in Vietnam, with the most outstanding examples being major transport projects nationwide such as Can Tho Bridge, the Hanoi-Hai Phong Expressway, Nhat Tan Bridge, Vo Nguyen Giap Avenue and the second phase of Noi Bai International Airport.
Japanese ODA-funded projects have not only helped Vietnam develop the economy and society but have also contributed to attracting foreign direct investment and facilitating international integration. To ensure Japanese trust, the Vietnamese government has pledged to effectively use every single yen worth of Japanese ODA for Vietnam.