Japan to Lend $1.5 Billion in ODA to Vietnam

Tuan Minh

09:00 30/05/2016

BizLIVE - Japan has agreed to provide a combined $1.5 billion in official development aids for Vietnam’s infrastructure projects.

Japan to Lend $1.5 Billion in ODA to Vietnam

The agreements on ODA were signed in the presence of PMs Nguyen Xuan Phuc and Shinzo Abe. (Photo: Quang Hieu/VGP)

Japan will provide loans worth 166 billion Japanese yen ($1.5 billion) in official development assistance (ODA) for Vietnam, affirming its status as the latter’s largest ODA donor.
The agreements on the loans were signed in the presence of Prime Minister Nguyen Xuan Phuc, who was paid a visit to Japan on May 26-28, and PM Shinzo Abe.
Under the agreements, Japan will lend $820 million to develop a railway connecting downtown Ho Chi Minh City and its suburbs, $500 million to build Thai Binh thermal power plant, and $191 million to improve the water environment in HCM City.  
The two prime ministers voiced their pledges to accelerate major infrastructure projects in Vietnam, including the North-South road and Ninh Thuan 2 nuclear power plant.
PM Abe also announced an emergency grant worth $2.5 million to help Vietnam deal with a drought that has dried up nearly 140,000 hectares in the Mekong Delta, a key rice-growing region.