Japan considers providing next-generation ODA loans to Vietnam: ambassador

Japan will consider offering next-generation ODA loans to Vietnam, focusing on new areas such as digital transformation, green transformation, climate change response, health and education, a declared the new Japanese ambassador to Vietnam, Ito Naoki.

Japan’s ODA loans to Vietnam have played an important role in the country’s development over the years, Ambassador Ito Naoki said Tuoi Tre (Youth) during a press conference Friday in Hanoi, on the occasion of the start of his mandate as ambassador to Vietnam.

This is clearly seen upon arrival at Hanoi-based Noi Bai International Airport, where one will see Terminal T2, or when crossing the Nhat Tan Bridge towards the heart of the capital.

These works, like many others, were built with ODA loans from Japan, as well as with Japanese technologies during construction.

Besides infrastructure, Japan has also provided ODA for technical cooperation projects, with Japanese experts coming to Vietnam to transfer knowledge, techniques and technologies.

Over the past 30 years, Japan has provided ODA loans worth 3.26 trillion yen ($128.1 million) to Vietnam, Naoki said.

The new Japanese ambassador affirmed that one of his objectives during his mandate is to revitalize activities thanks to ODA loans.

This means that Japanese ODA to Vietnam will not be limited to infrastructure, techniques or technologies, but will also cover new areas including digital transformation, green transformation, health and education, Naoki added.

Last year, Japan announced in its White Paper on Development Cooperation that the country would proactively consider offering ODA to developing countries, in addition to the traditional practice of considering ODA based on requests from potential recipients.

Accordingly, Japan will proactively consider ODA loans to Vietnam in the above-mentioned new areas.

He also cited the joint declaration between the two countries when they upgraded their bilateral relations to a comprehensive strategic partnership in November 2023.

According to the statement, the two countries will promote projects in Vietnam using Japan’s new generation ODA loans, which are offered with high preferences, simple procedures and flexible mechanisms.

The ambassador also said that Japan is focusing its efforts to accelerate three key projects using Japanese ODA loans, including Metro Line No. 1 in Ho Chi Minh City, the Ben Luc – Long Thanh section of the North-South Expressway connecting the southern provinces of Long An and Dong Nai, and Metro Line No. 2 in Hanoi.

Investments by companies from both countries play an important role in deepening bilateral relations, the ambassador said.

Currently, investment procedures in Vietnam are long and complicated, Naoki commented, and called for efforts to resolve this problem so that the country can attract more investment from Japan.

In general, Japanese companies believe that Vietnam has a lot of potential and prospects to attract foreign investment, the ambassador said, adding that the number of Japanese companies in Vietnam now exceeds 2,000, including 1,000 in the region. south, 200 in the central part and the rest in the northern localities.

Naoki cited the recent survey by the Japan External Trade Organization (JETRO), revealing that Vietnam is the second most attractive destination for Japanese companies and that about 60 percent of Japanese companies have expressed their desire to increase investment in the Southeast Asian country.

To explain this, the Japanese ambassador cited three factors that made Vietnam attractive, including positive economic prospects, a market of 100 million people and an abundant and quality workforce.

Furthermore, Vietnam is currently considered an important link in the global supply chain.

There remain some problems such as incomplete infrastructure, cumbersome red tape and unstable electricity supply, but in general, Japanese companies view Vietnam as an attractive investment destination, the ambassador concluded.

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