>> Japan continues to prioritise ODA for Vietnam

>> Experts: Japan will strive to fulfil financial commitments to Vietnam

Japan will continue providing Official Development Assistance (ODA) to Vietnam in the coming years.

Mr. Tsuno Motonori at the press conference

Chief Representative of the Japan International Cooperation Agency (JICA) in Vietnam Tsuno Motonori announced at a press conference held in Hanoi on June 15. The statement followed the confirmation of a loan worth JPY40.95 billion (USD510 million) for two traffic infrastructure projects in central and southern Vietnam.

Motonori said the loan for the Ho Chi Minh City-Long Thanh-Dau Day and Danang-Quang Ngai motorway sections was Japan’s first loan to Vietnam after it had been hit by a tsunami and earthquake on March 11.

In the coming time, JICA will provide loans for the Lach Huyen International Port in Haiphong City and Long Thanh International Airport in Dong Nai Province.

According to Motonori, despite Vietnam becoming a middle-income country with per capita income of over USD1,000, the country needed more investment to match regional countries such as Thailand, Malaysia and Singapore.

Infrastructure development is a bottleneck for Vietnam in terms of attracting foreign direct investment, and JICA will continue to focus funding in the sector.

However, he said “It is not enough for Vietnam to rely on ODA for infrastructure, it needs to boost the public-private partnership (PPP) model,” adding that JICA is supporting Vietnam in finalising its PPP policies.

The JICA representative noted that Vietnam’s public debts are quite low compared to the scale of the national economy, and Japan’s decision to provide ODA for Vietnam was based on its solvency, he said.

He highlighted that Vietnam should be patient in implementing policies to curb inflation, and concentrate of stabilising the macro economy to enhance the efficiency of ODA-funded projects.

Slow site clearance was also cited as being one of the biggest barriers to the efficient implementation of ODA projects, and Japan will co-operate with Vietnam’s largest ODA donors, including the World Bank and Asian Development Bank, to help Vietnam boost the efficient use of ODA, Motonori stressed.

Vietnam is currently Japan’s second largest ODA recipient, just behind India.