The Japan International Cooperation Agency (JICA) has signed loans totaling 102.2 billion yen for Vietnam in the 2023 fiscal year, marking the highest amount of official development assistance (ODA) since 2017. This excludes private sector investment funding. The announcement was made by Sugano Yuichi, Chief Representative of JICA Vietnam, at a press conference on October 17, 2024.
2023 is a significant year, as it marks the 50th anniversary of diplomatic relations between Japan and Vietnam. The two countries have elevated their relationship to a “Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World.” JICA’s financial and technical assistance has played a pivotal role in fostering Vietnam’s economic growth and development.
Largest Loan and Technical Assistance in Recent Years
In the Japanese fiscal year from April 2023 to March 2024, JICA signed loans amounting to 102.2 billion yen (approximately $678 million), representing the highest ODA level in the last six years. Technical cooperation reached 5.2 billion yen ($35 million), the largest JICA has committed worldwide this fiscal year. Additionally, non-refundable aid to Vietnam amounted to 1.1 billion yen ($7.5 million).
“JICA’s projects have significantly supported Vietnam’s post-pandemic economic recovery, focusing on infrastructure development and human resource training, laying the groundwork for medium- and long-term growth,” said Sugano.
Japan’s Continuing Interest in Vietnam
Japanese businesses and people continue to view Vietnam as a stable and sustainable growth market. JICA currently manages 45 Japanese Overseas Cooperation Volunteers in Vietnam and supports 36 investment projects by Japanese small and medium-sized enterprises. Vietnam also leads in grassroots technical cooperation projects, with 24 initiatives under JICA’s Development Partnership Program. Furthermore, Vietnam is the second-largest recipient of JICA’s “Private Sector Investment Finance” with nine active projects.
Key Pillars of JICA’s Work in Vietnam
JICA’s efforts in Vietnam focus on three pillars: high-quality growth, support for vulnerable groups, and human resource development.
High-Quality Growth
JICA’s loan-funded Binh Hung wastewater treatment plant in Ho Chi Minh City, the largest in Vietnam at the time of its inauguration in August, addresses severe water pollution. The agency is also constructing the Yen Xa wastewater treatment plant in Hanoi, another significant project expected to improve urban living conditions.
Additionally, Ho Chi Minh City’s much-anticipated Metro Line 1 has begun trial runs. Once operational, this urban railway is expected to ease traffic congestion and reduce carbon emissions, benefiting both residents and the environment.
Support for Vulnerable Groups
In response to storm No. 3, which caused extensive damage in northern Vietnam, JICA dispatched a senior disaster risk management expert to assist the Ministry of Agriculture and Rural Development. JICA also supported rural communities with the completion of the Northern Nghe An Irrigation System in March, which expanded the irrigated area and improved agricultural livelihoods.
In the health sector, JICA is preparing a new technical cooperation project to strengthen Vietnam’s prevention of viral hepatitis. It is also providing non-refundable aid to upgrade medical equipment at K Hospital to help meet the rising demand for cancer treatment.
Human Resource Development
2024 marks the 10th anniversary of the Vietnam-Japan University. A commemorative event was held in October to celebrate the partnership, which symbolizes the deep collaboration between the two nations in education and human resource development.
JICA’s multifaceted support for Vietnam continues to contribute to the country’s infrastructure, healthcare, and educational growth, strengthening its long-term development trajectory.
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Source: Vietnam Insider