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JICA loan commitment for Vietnam maintained
Fujita Yasuo, Chief Representative of the JICA Vietnam office, made this statement on April 20, adding that Vietnam remained one of the countries with the largest JICA-funded projects in the world.
In FY 2016, Japan pledged to provide Vietnam with JPY 187.1 billion (US$1.7 billion) in loans and disbursed JPY 175.6 billion (US$1.6 billion) for the country.
Fujita Yasuo said in FY 2017, JICA will maintain its support as in FY 2016 for the promotion of economic growth and international cooperation capacity, enhancing state governance, and supporting vulnerable groups.
However, areas of support will be adjusted in accordance with Japanese Government policies, Vietnamese Government demand and sustainable development goals.
The JICA representative said disbursement for FY 2017 was set to decrease from FY 2016, since the Thai Binh thermal power plant project had already passed the stage that needed significant funding.
Additionally, Vietnamese Government curbs on the disbursement of corresponding capital from its budget will also influence JICA’s disbursement of the committed loans.
Fujita Yasuo pointed out obstacles to JICA’s support provision, elaborating that the handling of administrative procedures and site clearance remain sluggish. Meanwhile, procedures for approving ODA projects have become more complicated under the Vietnamese Government’s Decree 16/2016/ND-CP on the management and use of foreign sponsored ODA and concessional loans.
He stressed that JICA respects Vietnam’s public debt limit, but the country should simplify necessary procedures so as to facilitate the disbursement of the committed capital and implementation of projects.
The problems JICA has encountered also affect other foreign sponsors in Vietnam, so they will work together to ask the Vietnamese Government to tackle the obstacles, he added.
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