Vietnamese Deputy Prime Minister Le Minh Khai has proposed that Japan provide new official development assistance (ODA) loans for Vietnam to develop its strategic infrastructure projects, according to the Vietnam Ministry of Foreign Affairs.

Deputy PM Khai made the suggestion at his meeting with President of the Japan International Cooperation Agency (JICA) Tanaka Akihiko in Tokyo on Friday, as part of his trip to Japan from May 22-25 for attendance of the 29th Future of Asia Forum and a working visit to the northwestern Asian country.

Khai told the JICA leader that new ODA loans, with more favorable lending conditions and simplified procedures and possibly in the form of budget support, are necessary for Vietnam to carry out its large-scale strategic infrastructure development projects.

The Vietnamese official also suggested Japan continue providing ODA loans for projects in digital transformation, green transition and urban railway in Hanoi, Ho Chi Minh City, as well as other projects including those in high-quality human resources training.

He expressed high appreciation for Japanese ODA loans as well as JICA’s significant support that have helped Vietnam successfully implement a lot of projects in various fields, contributing to boosting Vietnam’s socio-economic development and promoting comprehensive cooperation between the two countries.

Vietnamese Deputy Prime Minister Le Minh Khai (R) shakes hands with President of the Japan International Cooperation Agency (JICA) Tanaka Akihiko at their talk in Tokyo on May 24, 2024. Photo: Ministry of Foreign Affairs

JICA President Tanaka expressed his pleasure at the effective ODA cooperation between the two countries over recent times, with the ODA amount provided by Japan to Vietnam in the last fiscal year exceeding 100 billion yen (US$637 million) for the first time since 2017.

Highly valuing the Vietnamese government’s direction in speeding up ODA-funded projects, Tanaka affirmed that JICA wishes to continue cooperation in high-quality infrastructure projects that meet Vietnam’s needs. 

JICA will also go on with joint projects in human resources training as well as in new fields such as digital transformation, green transformation, semiconductors and creative innovation, Tanaka stated.

In recent times, Japan’s ODA disbursement rate in Vietnam has increased significantly, according to JICA.

Japan is currently Vietnam’s biggest ODA provider, offering more than 2.7 trillion yen ($17.2 billion) in ODA loans for the Southeast Asian country since 1992, the Vietnam News Agency reported. 

Earlier on the same day, deputy PM Khai and Japanese Prime Minister Kishida Fumio has a meeting, at which Khai affirmed the Vietnam sees Japan as a top and long-term important partner and wishes for two sides to beef up the implementation of their comprehensive strategic partnership as well as the common perceptions between PM Pham Minh Chinh and his Japanese counterpart.

Khai also conveyed PM Chinh’s invitation for PM Kishida to visit Vietnam soon. 

The Japanese leader thanked and highly appreciated Vietnam’s participation and contributions to the 29th Future of Asia Forum, where deputy PM Khai delivered an important speech on Thursday. 

PM Kishida pledged to continue promoting the bilateral comprehensive strategic partnership more substantively and effectively in all fields in the coming time.

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