JICA Makes Proposals to Quicken ODA Projects in Vietnam

In a meeting with Deputy Prime Minister Tran Luu Quang on March 26, Executive Senior Vice President of the Japan International Cooperation Agency (JICA) Yamada Junichi presented suggestions to expedite official development assistance (ODA) projects in Vietnam.

Specifically, JICA suggests both parties consider the possibility of ODA loans under financial support to supplement Vietnam’s budget, albeit with an interest rate of around 1.8% instead of 0.01%.

Additionally, JICA is ready to discuss the implementation of 11 local infrastructure development projects, including assessing the potential for domestic tendering to shorten investment preparation time.

Another proposal by JICA is for Vietnam to establish a separate legal framework for additional loans beyond the mid-term budget plan from JICA and other financiers like the World Bank and the Asian Development Bank.

In reply, the Deputy Prime Minister proposed further consideration and discussion on interest rates and specific projects. Both parties affirmed close coordination in addressing obstacles in each project, including tax issues for Japanese contractors implementing ODA projects, to accelerate the progress of some delayed projects, especially Cho Ray 2 Hospital and Vietnam-Japan University.

Japan is Vietnam’s biggest ODA provider with over JPY2.7 trillion ($17.82 billion) since 1992, along with nearly JPY100 billion of non-refundable aid and JPY180 billion for technical support. Last year, Japanese ODA to Vietnam amounted to over JPY100 billion, the highest level since 2017.

(Bao Chinh Phu, Tin Tuc, Phap Luat TV, Bao Quoc Te, Thoi Dai)