Viet Nam, Japan sign US$609 mln in ODA loans

Deputy Minister of Finance Tran Quoc Phuong, representing the Vietnamese Government, and Japanese Ambassador to Viet Nam Ito Naoki signed the exchange of notes in Ha Noi on March 20.

Under the notes, Japan agreed to provide US$609 million in ODA for the fiscal year 2025 to support Viet Nam’s green transition and climate resilience.

The funding will be allocated to three key projects - budget support for green growth and climate adaptation, disaster-resilient rural development, and climate-adaptive infrastructure to support production in northern mountainous regions, particularly for ethnic minority communities.

Minister Tran said that the credit package reaffirms Japan's position as Viet Nam's largest bilateral ODA donor and reflects its continued commitment to strengthening the comprehensive strategic partnership between the two countries.

He added that the projects also mark a concrete step toward implementing a new-generation ODA model prioritizing green transition and climate resilience.

The loans build on previous Japanese budget support for Viet Nam's post-pandemic recovery, highlighting Tokyo's confidence in the country's policy implementation and fiscal management.

In reply, Ambassador Ito Naoki affirmed Japan supports Viet Nam's reform efforts toward a new development phase. He expressed hope that the funding would be effectively used in areas such as innovation, semiconductors, green transition and digital transformation, contributing to growth targets for 2026–2030.

Following the signing, the Ministry of Finance said it would work closely with relevant ministries, sectors and localities to ensure effective implementation of the projects. The ministry also expressed its expectation of continued close cooperation from the Japanese Government, the Embassy of Japan and the Japan International Cooperation Agency in maximizing the effectiveness of the ODA funding.

On March 18, the Japan International Cooperation Agency (JICA) office and the Ministry of Finance co-organized a signing ceremony for a US$320 million loan entitled "Green Transformation towards Green Growth and Climate Resilience" (GX-DPL) in a bid to support Viet Nam engage with its sustainability goals. 

The program aims to help Viet Nam achieve its nationally determined contributions while enhancing resilience to increasingly severe climate-related disasters. It also represents a flagship example of next-generation official development assistance (ODA), featuring streamlined preparation processes, faster disbursement and a strong focus on achieving development outcomes through effective policy design and resource mobilization./.