JICA vows to foster Vietnam – Japan comprehensive cooperation
VOV.VN - The Japan International Cooperation Agency (JICA) has pledged to make further efforts to contribute to Vietnam’s development through its ODA capital and to promote the recently established Comprehensive Strategic Partnership between Vietnam and Japan, according to Yuichi Sugano, chief representative of JICA – Vietnam Office.
Sugano told the Vietnamese Government’s portal ahead of Vietnamese Prime Minister Pham Minh Chinh’s departure for the ASEAN-Japan commemorative summit in Tokyo from December 15 to 18 that Japanese ODA capital is focused on key areas, such as transportation, energy, and urban infrastructure. By the end of 2022, the total capacity of power plants built from Japanese ODA and PSIF (Private Sector Investment and Finance) capital stood at 5,226 MW, equivalent to roughly 6.5% of the total installed capacity of the country’s power system.
Highlights of bilateral ties can also be seen through symbolic projects such as Noi Bai International Airport (Terminal 2) and Nhat Tan Bridge in Hanoi, as well as Binh Hung wastewater treatment plant and metro urban railway line No. 1 in Ho Chi Minh City. The Management Board of Ho Chi Minh City Urban Railways (MAUR) reports that 96% of the workload of the southern city’s metro line No.1 project has now been completed.
With regard to infrastructure development, JICA has granted loans to big projects such as National Highways 3, 5, 18; Ring Road 3; the Hai Phong, Cai Lan, and Lach Huyen ports; and Nhat Tan, Binh, and Bai Chay bridges.
In July 2023 JICA agreed to provide ODA loans worth JPY60,983 million, equivalent to nearly VND11,000 billion, to implement three projects in Vietnam. Of the total sum, JPY50 billion will go to the post-pandemic socio-economic recovery and development programme which has already been approved by the National Assembly. This can be considered as a ‘pioneer project’ of the Far East nation’s new generation ODA scheme for Vietnam, according to the JICA Vietnam leader.
Japan is in the process of discussing new-generation ODA sources to provide capital flexibly that can fully meet the needs of the Vietnamese Government, he said.
Sugano also revealed that moving forward JICA would prioritise co-operation with the Vietnamese side in high-quality infrastructure development, human resource development, health care, and climate change response.
To effectively implement ODA projects, he recommended that Vietnam move to introduce clear and easy-to-understand regulations, and simplify administrative procedures, pointing to the fact that a delay could cause the total project cost to increase due to inflation, exchange rate fluctuations, and increased prices of materials and equipment. He expressed his belief that ODA capital will be used more effectively when regulations are improved.
Japan is the largest ODA donor to Vietnam among member countries of the Organization for Economic Cooperation and Development (OECD), with its ODA capital making up more than 30% of the total ODA capital which foreign donors have committed to the country. From April 2022 to March this year, Japan committed JPY18.9 billion, equivalent to VND3,100 billion, to Vietnam.
