Vietnamese Prime Minister Pham Minh Chinh has asked the Japan International Cooperation Agency (JICA) to provide more preferential official development assistance (ODA) loans for Vietnam, with priority given to high-speed railways and the semiconductor sector.
At a meeting with JICA president Tanaka Akihiko in Tokyo on Monday, PM Chinh highlighted the role of ODA between the two countries and proposed JICA closely coordinate efforts with Vietnamese government agencies and localities to carry out projects and programs more effectively.
Vietnam is looking for Japanese ODA in five game-changing sectors, namely: strategic infrastructure development (transport, healthcare, education, especially high-speed railways, ports, airports, highways); emerging industries, green transformation, climate change response, new energies, semiconductor chips; human resource training and labor cooperation; (iv) healthcare and education; and environmental protection.
The PM ordered Vietnamese government agencies to work with JICA to remove hurdles, finalize current projects, and launch new ones.
He proposed JICA join hands with Vietnamese partners to study high-speed railway projects and establish a center for ODA studies at Vietnam’s National Innovation Center.
For his part, JICA president Tanaka welcomed new bilateral ODA agreements during Chinh’s visit, including a fourth loan worth JPY41.2 billion ($287 million) for the first metro line in Ho Chi Minh City which has been severely delayed and suffered cost overruns.
JICA has been working on new-generation ODA projects since June to suit Vietnam’s new context, Tanaka said, pledging to work with Vietnamese agencies to deploy projects more effectively.
Vietnam and Japan upgraded their ties to a comprehensive strategic partnership last month during Vietnamese President Vo Van Thuong’s Tokyo visit. Japan has committed to providing ODA loans totaling more than JPY100 billion ($674 million) in its 2023 fiscal year.