The Japanese Government has committed more than US$1.84 billion in official development assistance (ODA) loans to 11 ongoing and newly-launched projects in Viet Nam.
An Exchange of Note for the loans was signed yesterday between Viet Nam's Ministry of Planning and Investment and Japanese Embassy in Ha Noi.
Afterwards, the loan agreements were signed between Viet Nam's Ministry of Finance of and the Japan International Co-operation Agency (JICA).
Japan has continued to give preferential ODA loans to Viet Nam, despite the nation developing from a low-income to middle-income country, said Tsuno Motonori, JICA Chief Representative in Viet Nam.
In 2015, tariff barriers are scheduled to be removed within the ASEAN region, meaning Viet Nam will have to improve its business and investment environment, while enhancing international competitiveness through structural reform of its economy.
In terms of administration, the nation will need to improve its financial system, as well as infrastructure, to continue its economic growth and mid to long-term macroeconomic stability, said Motonori.
He disclosed that Viet Nam has ranked second (after India) among Asian countries borrowing ODA from Japan. Around $1.27 billion has been disbursed for socio-economic development projects in Viet Nam so far.
The credit will be used to implement five key transport projects, including the Noi Bai International Airport to Nhat Tan bridge road construction (Phase II); Nhat Tan bridge construction (Phase III); the second transport sector loan for national road network improvement; safety improvement of the Ha Noi – HCM City railway line bridges (Phase III); and the Ha Noi City urban railway construction (Line 1) Phase I – Ngoc Hoi Complex (Phase I).
It will also fund important infrastructure and power projects including the Cai Mep – Thi Vai International Port Construction (Phase II); O Mon Thermal Power Plant Unit 2 Construction (Phase II); North Nghe An irrigation system upgrading; and the Ha Noi City Yen Xa sewage system (Phase I).
Furthermore, two projects on economic management and climate change response will be funded through the agreement.