Deputy PM hosts JICA executive senior vice president

Quang informed his guest about Vietnam’s budget management mechanism as well as its recent efforts in removing difficulties and speeding up the progress of projects using Japanese ODA capital.

Junichi for his part appreciated the Government of Vietnam accelerating the disbursement of the ODA capital, and proposed that the two sides consider the possibility of borrowing ODA capital in the form of financial support, with the interest rate to be estimated at about 1.8% instead of 0.01% as seen in other loans.

He affirmed that JICA is ready to discuss with Vietnam the implementation of 11 local infrastructure development projects, noting that it is considering the possibility of inviting local tenders instead of international ones in an attempt to shorten investment time.

The JICA vice president also proposed that Vietnam formulate its own legal framework for additional loans outside the medium-term budget plan from JICA as well as other donors such as the World Bank and Asian Development Bank.

In response, Deputy PM Quang welcomed JICA’s proposals, and suggested that the two sides discuss the most appropriate interest rate and each specific project from the new loans.

The two sides affirmed that they would coordinate closely in removing difficulties in order to speed up Japanese funded ODA projects that are falling behind schedule, especially the Cho Ray Hospital facility 2 project and the Vietnam-Japan University project.

Japan is Vietnam’s largest ODA donor. It has since 1992 given Vietnam more than JPY2,700 billion in ODA loans, nearly JPY100 billion in non-refundable aid and nearly JPY180 billion in technical assistance. Japan’s ODA accounts for over 30% of bilateral development aid for Vietnam.

In 2023, Japan’s total ODA capital for Vietnam reached more than JPY100 billion, the highest level since 2017.