Japanese ODA is massive contribution for Vietnam

In 1954, JICA began its programme on providing official development assistance (ODA), and in Vietnam in 1992. What stands out during this journey?

Over the past 70 years of ODA provision, Japan has attached importance to the self-reliance of partners being developing nations, with a development approach for the medium- and long-term vision. Japan is strong in human resource development as it attached importance to the relations between people with people.

Sugano Yuichi, chief representative at the Japan International Cooperation Agency’s (JICA) Vietnam office

JICA is aware that international cooperation is not simply the transfer of knowledge and technology, but must be based on rely on and focus on cementing the people-and-people relations. This has helped strengthen the bilateral ties between Japan and partner nations via ODA.

With Vietnam over the past years, JICA has extended ODA cooperation with this nation in many sectors with success. For example, we have implemented the new international gateways including Noi Bai International Airport, Nhat Tan Bridge and the expressway from Noi Bai to the bridge, the East-West highway in Ho Chi Minh City, the Hai Van tunnel, and Can Tho Bridge in the Mekong Delta.

Japan has assisted Vietnam in many ways, from developing a national transport strategy to formulating plans for large-scale projects with high priority.

In addition, in the healthcare sector, Japan has cooperated with Vietnam in ameliorating the facilities and personnel development at the three key hospitals in the country’s three regions, including Bach Mai Hospital in Hanoi, Cho Ray Hospital in Ho Chi Minh City, and Hue Central Hospital. In the governance sector, Japan has seconded Vietnam in reforming laws and policies for a market-based economy.

Japan has also supported Vietnam in building facilities and bettering capacity for key educational institutes such as Can Tho University, Hanoi University of Science and Technology, Vietnam Japan University, Hanoi University of Industry, Ho Chi Minh City University of Technology, and the Vietnam-Japan Institute for Human Resources Development.

Could you elaborate on the specific value of such ODA recently?

Last year marked the 50th anniversary of diplomatic relations between Vietnam and Japan. In November, both countries elevated their relationship to a new level termed “Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the world”.

Based on this foundation of friendship, JICA has worked to carry out projects supporting Vietnam’s economic development.

For Japan’s fiscal year to March 2024, JICA Vietnam signed loan agreements totalling ¥102.2 billion ($678 million), excluding private sector investment and finance, representing the highest level in six years since 2017. Technical cooperation hit ¥5.2 billion ($35 million), the largest of the countries which JICA implemented cooperation in the same fiscal year. Grant aid commitments amounted to ¥1.1 billion ($7.5 million).

These programmes and projects have promptly supported Vietnam’s economic recovery following the pandemic and contributed to infrastructure and human resource development, laying a foundation for long-term economic growth.

What will be JICA’s assistance be for Vietnam for the next six months or so and beyond?

Going forward, we will focus on three priorities in our work with Vietnam. The first is high-quality growth. We are supporting the construction of the Yen Xa wastewater treatment plant, the largest in Hanoi, which is about to start its operation.

Additionally, metro line 1 in Ho Chi Minh City, which has garnered significant attention, has commenced trial operations. The city is working to launch this urban railway soon.

The second priority is response to fragility, and we are implementing a technical cooperation project on strengthening the capacity to cope with and minimise damages caused by flash floods and landslides in the northern mountainous region.

As part of this project, we are constructing to prevent sediment-related disasters and formulating a sediment disaster risk reduction plan in the northern province of Son La. Additionally, we are considering formulating the plan in areas that were particularly hard hit by the recent typhoon. We will continue to cooperate to ensure that economic growth is not hindered by natural disasters.

In the agricultural sector, within the framework of our technical cooperation to enhance the value chain for safe crop production in the northern region affected by the recent storm, we are committed to responding flexibly to the practical needs of farming households. This includes providing emergency assistance to aid in the swift recovery of those impacted by the storm and facilitating the timely resumption of agricultural production in the near future.

In the health sector, we have launched a technical cooperation project aimed at developing personnel to improve healthcare services in remote areas. Simultaneously, we are preparing a new technical cooperation project to enhance viral hepatitis prevention, a common infectious disease in Vietnam.

Moreover, we signed a grant agreement in May to upgrade medical equipment at K Hospital to meet the growing demand for cancer diagnosis and treatment.

The final priority is human resource development. This year marks a decade since the establishment of Vietnam Japan University. We will continue our cooperation with the university to develop personnel capable of serving as a bridge between Vietnam and Japan.

How can Vietnam access and use more ODA more effectively?

ODA aims to contribute to Vietnam’s national socioeconomic development promptly and effectively. Regarding this, the harmony between Vietnam and international donor agencies’ procedure is important.

Recently, donor agencies recognised some delays in internal approval processes due to inconsistency and overlapping of ODA related laws. However, JICA acknowledges the effort and action of the Vietnamese government to improve the ODA environment by having dialogue to discuss the issue with donors and being flexible to reflect our proposal to the revision of laws and regulations.

By doing so, we do hope that ODA procedure will become clearer and donors such as JICA can implement projects smoothly and effectively. JICA will continue to be a partner of Vietnam with respect to the autonomy of Vietnam as a recipient of ODA.

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