Finance Minister Shunichi Suzuki has expressed the Japanese government’s willingness to finance a trans-Vietnam high speed railway project and other infrastructure works.
Suzuki was responding Monday to a request by his Vietnamese counterpart Ho Duc Phoc, who is leading a delegation to visit Japan.
Phoc said that Vietnam’s public debt amounted to 37% of its GDP, far below the regulatory ceiling of 60%, leaving ample room for further foreign borrowings for infrastructure development.
Pitching imminent infrastructure projects, Phoc said Vietnam plans to borrow 30% from foreign sources for its $67-billion North-South high-speed railway project, scheduled for implementation in 2027.
Japan is currently Vietnam’s leading ODA and grant donor of Vietnam.
The two finance ministers discussed bilateral cooperation in tax, customs, loans, and official development assistance (ODA) as well as exchange of expertise in financial management.
They agreed to enhance coordination with multilateral frameworks likes ASEAN+3, Chiang Mai Initiative Multilateralization (CMIM), and Disaster Risk Finance (DRF) towards ensuring regional financial stability and resilience.
Earlier the same day, Phoc had working sessions with Teruhisa Kurita, head of Japan’s Financial Services Agency; and Hiromi Yamaji, president and CEO of the Tokyo Stock Exchange, Inc.
On Monday, he met with Masahiko Kato, president & CEO of Mizuho Bank, and asked for the bank’s assistance in financing the high-speed railway project.
Vietnam’s Party Politburo, the country’s highest decision-making body, last month requested relevant authorities to prioritize allocating resources for critical transport infrastructure projects, including the trans-Vietnam high-speed railway and major expressways.