Hanoi and Tokyo will discuss the possibility of Japan providing a new generation of ODA with simpler procedures for Vietnam's strategic infrastructure development projects.
On May 21, Prime Minister Pham Minh Chinh held talks with Prime Minister Fumio Kishida, on the occasion of attending the expanded G5 Summit and working in Hiroshima, Japan. This is the 7th Vietnam-Japan high-level meeting between the two counterparts in more than a year.
Japan is the largest provider of concessional ODA loans to Vietnam, about 17 billion USD since 1992, accounting for about 30% of the total ODA of the international community committed to Vietnam.
The two Prime Ministers said that in the coming time, the two countries will discuss the possibility of Japan providing a new generation of ODA for Vietnam's large-scale strategic infrastructure development projects, such as the North-South high-speed railway, urban railway, climate change control, green transformation and health care. These loans will have high incentives, simpler and more flexible procedures than before.
Prime Minister Pham Minh Chinh and Japanese Prime Minister Fumio Kishida in Hiroshima on May 21. Image: Duong Giang
Currently, some ODA cooperation projects are behind schedule, such as Cho Ray Hospital 2, the construction project of urban railway line No. 1 Ben Thanh - Suoi Tien. Prime Minister Pham Minh Chinh said he would direct ministries and sectors to accelerate the progress of these projects, ensuring effective investment capital.
Before the talks, the two Prime Ministers witnessed the exchange of documents to sign three ODA cooperation projects with a total value of 3 billion yen (about 61 million USD). This amount will be spent by Vietnam for the new generation ODA budget support program for post-Covid-500 socio-economic recovery and development, about 19 billion yen, the rest is for the development of two transport infrastructure projects in Binh Duong and Lam Dong.
Prime Minister Pham Minh Chinh asked Japanese leaders to promote a new wave of Japanese investment in Vietnam in the fields of high technology and renewable energy.
He also suggested the Japanese government create favorable conditions, simplify visa procedures and move towards visa-free entry for Vietnamese citizens, to promote tourism cooperation and create favorable conditions for the nearly 500.000 Vietnamese community in Japan.
Prime Minister Kishida affirmed that Vietnam has a leading position in the implementation of Japan's foreign policy in the region.
The two leaders agreed to promote defense-security cooperation and increase linkages between the two economies through boosting investment and trade cooperation. The two sides also affirmed to coordinate their stances on issues of mutual concern at multilateral and regional forums such as ASEAN, the United Nations, and APEC.
Prime Minister Pham Minh Chinh holds talks with Prime Minister Kishida Fumio, May 21, in Hiroshima, Japan. Image: Nhat Bac
Prime Minister Pham Minh Chinh attended the 7th G49 Open Summit on May 20-21, at the invitation of Japanese Prime Minister Fumio Kishida. This is the third time Vietnam has attended this conference and the second time at the invitation of Japan. This year, Vietnam is one of two Southeast Asian countries invited by Japan, next to Indonesia.
The G7 includes the advanced industrialized nations of the US, UK, France, Germany, Japan, Canada and Italy, which play an important role in shaping and strengthening the global structure and governance.
2023 is the year Vietnam - Japan celebrate the 50th anniversary of the establishment of diplomatic relations. The extensive strategic partnership of the two countries has developed comprehensively over the past time. Japan is the first G7 country to recognize Vietnam's market economy status.
This country is Vietnam's fourth largest trading partner, the total import and export turnover last year reached nearly 50 billion USD, up from 42,7 billion USD in 2021. In the first three months of this year, import and export turnover of the two countries reached nearly 11 billion USD.
Regarding direct investment, Japan ranks third among 3 countries and territories pouring capital into Vietnam. Accumulated to the end of March, Japanese enterprises have invested in 143 FDI projects with a total capital of nearly 3 billion USD.
