The Japanese Government will provide the Vietnamese Government with a loan of JPY11 billion (US$108.2 million) in fiscal year 2016 to improve socioeconomic infrastructure and the competitiveness of the national economy.
A diplomatic agreement to this effect was signed in Hà Nội on Tuesday by the Deputy Minister of Planning and Investment, Nguyễn Văn Trung, and by the Japanese Ambassador to Việt Nam, Hiroshi Fukada.
Deputy Minister Trung hailed Japan as Việt Nam’s biggest provider of Official Development Assistance (ODA) at the signing ceremony. He pledged that the ODA will be used to strengthen the bilateral economic strategic partnership.
The loan will enable the Vietnamese Government to carry out the third phase of the Economic Management and Competitiveness Credit programme (EMCC). This will allow Việt Nam to strengthen reforms in several priority areas, as part of the 2016-2020 socioeconomic plan adopted by the National Assembly last April.
Japanese Ambassador Fukada expressed hope that the Vietnamese Government will use the loan productively and transparently to help the country achieve administrative and financial institution reforms. He also urged Việt Nam to focus on personnel training and effective policy enforcement.
The Japanese government has committed nearly JPY2.8 trillion ($27.5 billion) in ODA funding to Việt Nam so far, including the new loan.
The Vietnamese Finance Ministry and the Japan International Cooperation Agency will sign a specific lending agreement in the future, based on Tuesday’s diplomatic agreement.