Deputy Minister of Vietnamese Planning and Investment Nguyen Van Trung and Japanese Ambassador to Vietnam Hiroshi Fukada signed the exchange of notes on Japan’s official development assistance (ODA) to Vietnam in the fiscal year of 2016 in Hanoi on September 6. signed the exchange of notes on Japan’s official development assistance (ODA) to Vietnam in the fiscal year of 2016 in Hanoi on September 6.
Accordingly, the Japanese Government will provide the Vietnamese Government with an ¥ 11 billion (US$105 million) for the latter to improve socioeconomic infrastructure and the competitiveness of the national economy, thus enabling it to attract more foreign investment flows.
Deputy Minister Nguyen Van Trung said that Japan is still the largest bilateral donor of Vietnam. The ODA is aimed at supporting the Vietnamese Government to launch the Economic Management and Competitiveness Credit (EMCC) Development Policy Operation Programme to reform some prioritised areas in realising the five-year socioeconomic development plan from 2016-2020.
Accordingly, the support will be carried out throughout three pillars. Firstly, the loan helps the Government of Vietnam maintain macroeconomic stability, strengthen financial and fiscal management, including bad debt treatment, banking reform, debt and money management. Secondly, the credit aims to increase transparency, practice thrift and improve responsibility in the public sector as well as strengthen public administrative bodies, State-owned enterprise (SOE) management and public investment. Thirdly, it aims to improve the business environment and reduce financial burden, tax policy and public procurement and enhance administrative procedures.
Speaking at the ceremony, Japanese Ambassador Hiroshi Fukada said this is the Third Economic Management and Competitiveness Credit (EMCC) that Japan helps Vietnam. Unlike the other times when most of the loans are for major infrastructure projects, the funding this time is used to aid Vietnam’s national budget. He expressed his hope that the Vietnamese Government will use the loan productively and transparently, contributing to helping the country with administrative and financial institution reform.
In addition, he said that Vietnam is among countries with a lot of potential and advantages for stronger economic development. But, to translate that potential and advantages into reality for development, the Government of Vietnam must pay special attention to training human resources, accumulating experience and effectively use the budget. With this ¥ 11 billion loan, the Japanese Government has so far committed nearly ¥2.8 trillion of ODA to Vietnam.
This exchange of notes specifies general conditions for provision and use of ODA loans for the above programme. Based on the diplomatic note, the Ministry of Finance of Vietnam and the Japan International Cooperation Agency (JICA) will sign a specific lending agreement in the future.
Delivering a closing address to the ceremony, Deputy Minister Nguyen Van Trung reaffirmed that the ODA will be used effectively by the Government and localities of Vietnam, contributing to further deepening the bilateral economic strategic partnership.
Anh Phuong
Vietnamese
