On the morning of March 18, the Japan International Cooperation Agency (JICA) and the Ministry of Finance co-hosted a workshop on a JPY50 billion programme loan for green transition towards green growth and climate adaptation.

The cooperation represents a “new-generation ODA” model, featuring a shortened preparation process and faster disbursement procedures, while maintaining development objectives through policy design and effective resource mobilisation.

JICA is currently carrying out a number of technical cooperation projects, including forest conservation, disaster risk reduction, climate change response and the promotion of a circular economy.

Speaking at the event, Japanese Ambassador to Vietnam Ito Naoki said the signing of the programme loan marks the start of new initiatives and proactive efforts towards green growth, net zero and the Asia Zero Emission Community (AZEC). He added that JICA will accelerate support for Vietnam’s green growth and net-zero goals through disbursement of the programme loan and implementation of committed policies.

At the workshop, Deputy Minister of Finance Tran Quoc Phuong said pursuing green growth and climate adaptation has become an essential global agenda amid increasing environmental degradation, climate change and the depletion of finite resources, which are affecting sustainable development.

Vietnam is among the countries most affected by climate change and sea level rise, he said, noting that in recent years the country has faced more frequent and severe storms and floods, causing significant socio-economic losses and directly affecting people’s lives.

Vietnam’s demand for financial resources to support green growth in the coming period is substantial. Estimates put total financing needs for emission reduction measures across sectors at about US$68.75 billion by 2030. Of this, domestic resources are expected to account for more than US$24.7 billion, or 36%, while international support is projected at around US$44 billion, or 64%.

To secure these resources, Vietnam hopes that international partners, including Japan, will continue to cooperate and support the country in finance, technology and human resources, Phuong added.

The JPY50 billion programme loan for green transition towards green growth and climate adaptation has been approved by both governments and is expected to be signed in March 2026, Tran Quoc Phuong said.

This is an important outcome in realizing high-level commitments between the two countries to advance next-generation ODA, with more favourable conditions, simpler procedures and greater flexibility, focusing on Vietnam’s priority areas of green transition and climate response, and contributing to further development of bilateral ties.

Vietnam moves to improve efficiency in foreign loan and ODA capital use

The Ministry of Finance (MoF) on September 26 held a workshop in Hanoi to introduce Decree 242/2025/ND-CP, a newly issued regulation aimed at improving the management and use of official development assistance (ODA) and foreign preferential loans.