HCMC – Japan will provide Vietnam with JPY61 billion, or nearly US$500 million, in official development assistance (ODA) to fund its projects.

Prime Minister Pham Minh Chinh and his Japanese counterpart Fumio Kishida witnessed the signing of three ODA agreements on May 21 while the former was in Hiroshima for the expanded G7 Summit.

The ODA projects are for socio-economic development and recovery after the pandemic, the development of public transport in the southern province of Binh Duong, and the development of agricultural facilities in the Central Highlands province of Lam Dong.

JPY50 billion of the total will be set aside for the socio-economic development and recovery program.

PM Chinh held talks with Kishida on May 21 in Hiroshima.

The two leaders said the two countries would discuss the possibility of Japan providing new-generation ODA for large-scale infrastructure projects, such as the North-South high-speed railway, urban railways, climate change adaptation and green transformation.

The two PMs would direct their relevant ministries and departments to accelerate the progress of certain ODA projects, such as the Cho Ray 2 Hospital and the Ben Thanh-Suoi Tien urban rail line.

PM Chinh asked Japan to speed up investment in the high technology and renewable energy sectors in Vietnam, as well as simplify visa procedures and apply visa-free entry for Vietnamese citizens to promote tourism cooperation.

Japan ranks third among 143 countries and territories investing in Vietnam. By the end of March, Japanese busiensses had pledged nearly US$70 billion for over 5,000 FDI projects in the country.

Japan is the largest donor of concessional ODA to Vietnam, with US$21.6 billion.