Japan will consider offering new generation ODA loans for Vietnam, with focus put on new fields such as digital transformation, green transformation, climate change response, health and education, said newly-appointed Japanese Ambassador to Vietnam Ito Naoki.

Japan’s ODA loans for Vietnam have played an important role in the country's development over the years, Ambassador Ito Naoki told Tuoi Tre (Youth) newspaper at a press meeting on Friday in Hanoi, on the occasion of his start of his ambassadorship tenure in Vietnam.

It can be clearly seen from the moment when everyone arrives at Hanoi-based Noi Bai International Airport, where they will see the T2 terminal, or when they cross on Nhat Tan Bridge towards the heart of the capital. 

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

Besides infrastructure, Japan has also been granting ODA to 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 of 3,260 billion yen (US$128.1 million) to Vietnam, stated Naoki. 

The new Japanese ambassador affirmed that one of his goals during his term is to revitalize activities using ODA loans.

That means Japanese ODA for Vietnam will not be limited to infrastructure, techniques or technologies, but also cover new fields 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 in which ODA will be considered based on requests from potential recipients.   

Accordingly, Japan will proactively consider ODA loans for Vietnam in the aforementioned new fields.

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

Under 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 Japan is focusing efforts to accelerate three key projects using Japanese ODA loans, including the metro line No. 1 in Ho Chi Minh City, North - South expressway’s Ben Luc - Long Thanh section connecting southern Long An and Dong Nai Provinces, and the metro line No. 2 in Hanoi.

Investment from businesses of the two countries plays an important role in deepening bilateral relations, the ambassador said. 

Currently, Vietnam’s investment procedures are time-consuming and complicated, Naoki commented, and called on efforts to tackle this issue so that the country can attract more investment from Japan. 

In general, Japanese businesses assess that Vietnam has a lot of potential and prospects for foreign investment attraction, the ambassador said, adding that the number of Japanese enterprises in Vietnam now exceeds 2,000, consisting of 1,000 in the southern region, 200 in the central part and the rest in northern localities.

Naoki cited the Japan External Trade Organization's (JETRO) recent survey revealing that Vietnam is the second appealing destination for Japanese enterprises and that about 60 percent of Japanese firms have expressed their wish to expand investment in the Southeast Asian country.

Explaining this, the Japanese ambassador raised three factors that have made Vietnam attractive, including a positive economic outlook, a 100-million strong market, and an abundant and quality workforce. 

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

There remain some problems such as incomplete infrastructure, time-consuming paperwork, and unstable electricity supply, but in general, Japanese businesses see Vietnam as an attractive investment destination, the ambassador concluded.

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