Speeding up the progress of projects using Japanese ODA capital

(CPV) - The two sides affirmed that they will closely coordinate in removing difficulties and obstacles in each project, including tax issues for Japanese contractors implementing ODA projects, to promote the progress of some slow projects, especially the Cho Ray Hospital 2 project and the Vietnam-Japan University.

Deputy Prime Minister Tran Luu Quang received JICA Senior Executive Vice President Yamada Junichi.

On the afternoon of March 26, Deputy Prime Minister Tran Luu Quang received Senior Executive Vice President of the Japan International Cooperation Agency (JICA) Yamada Junichi, who is visiting Vietnam. At the meeting, Deputy Prime Minister Tran Luu Quang welcomed Mr. Yamada Junichi to visit and attend the kick-off meeting of the "Vietnam-Japan Joint Initiative in the New Era, Phase 1", organized by the Ministry of Planning and Investment in coordination with the Japan Federation of Economic Organizations (KEIDANREN) and the Embassy of Japan, opening up new cooperation opportunities between the two countries. The Deputy Prime Minister informed the JICA Vice President about the national budget management mechanism as well as Vietnam's recent efforts in removing difficulties and obstacles, speeding up the progress of projects using Japanese ODA capital. JICA Vice President Yamada Junichi said that in recent times, the disbursement rate of Japanese ODA capital has increased significantly; The rate of late and delayed loans is about 1.8 billion Yen, much less than in previous years thanks to the close direction of the Vietnamese Government. The Vice President of JICA affirmed his readiness to discuss with Vietnam on the implementation of 11 infrastructure development projects of localities, including considering the possibility of these projects being bid domestically instead of internationally competitive bidding to shorten the investment preparation time; proposing that Vietnam build a separate legal framework for additional loans outside the medium-term budget plan from JICA as well as other donors such as the World Bank, Asian Development Bank, etc. Welcoming JICA's proposals, Deputy Prime Minister Tran Luu Quang suggested that the two sides consider and discuss the most suitable interest rates and each specific project. Both sides affirmed that they will closely coordinate in removing difficulties and obstacles in each project, including tax issues for Japanese contractors implementing ODA projects, to promote the progress of some slow projects, especially the Cho Ray Hospital 2 project and the Vietnam-Japan University. Japan is Vietnam's largest ODA provider. Since 1992, Japan has provided Vietnam with over 2,700 billion Yen in ODA loans, nearly 100 billion Yen in non-refundable aid and nearly 180 billion Yen in technical assistance. Japan's ODA accounts for over 30% of bilateral development aid for Vietnam. In 2023, Japan's total ODA capital for Vietnam will reach over 100 billion Yen, the highest level since 2017.

PV - Communist Party of Vietnam Portal

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