Japanese Ambassador to Vietnam Hiroshi Fukada and Vietnamese Minister of Planning and Investment sign ODA agreement. (Photo: chinhphu.vn)
The Japanese government will lend the Vietnamese counterpart 95.17 billion yen (roughly $812 million) in official development assistance (ODA) so that the latter can carry out transport infrastructure and climate change response projects, the Vietnamese government said on its website.
The ODA will be allocated to three transport infrastructure projects, including the North-South expressway, Lach Huyen port in the northern coastal city of Hai Phong, and the fourth phase of a climate change response project.
The loan is the first batch of a package worth over 300 billion yen ($2.56 billion) that Japan committed to Vietnam in its fiscal year 2015, which runs through March 2016.
Japanese Ambassador to Vietnam Hiroshi Fukada said that the remaining loans would be allocated for three major transport projects and were expected to be signed by March 2016 to complete the 300-billion yen target.
Vietnamese Minister of Planning and Investment Bui Quang Vinh that Japan’s ODA for Vietnam dropped to a record low of 100 billion yen ($850 million) in 2014 after a Japan Transportation Consultants (JTC) executive in March 2014 admitted having given briberies to Vietnamese officials in exchange for a contract of Hanoi’s first elevated urban railway project.
Six Vietnamese railway officials link to the case were sentenced to between five and half years and 12 years in prison for “abuse of power”.
After resuming ODA for Vietnam in 1992, Japan has remained the largest ODA donor to Vietnam, with a total of 2.6 trillion yen ($22.21 billion), according to the state-run Vietnam News Agency.