The Japan International Cooperation Agency (JICA) on July 4 signed three loan agreements with the Vietnamese government of Vietnam to provide three official development assistance (ODA) loans worth up to $421 million in total over three years.
These loans are for the budget support programme for post-pandemic recovery; Binh Duong province's public transport improvement project; and an initiative for upgrading agricultural infrastructure in Lam Dong province.
The signing of the loan agreements marks another milestone to celebrate the 50th anniversary of the diplomatic relations between Japan and Vietnam
The post-pandemic recovery plan aims at providing the Vietnamese government high concessional funding for the implementation of the socioeconomic recovery and development, as passed by the National Assembly in early 2022.
Though Vietnam’s economy still showed a relatively good performance during the years of the pandemic, the negative impacts of COVID-19 were tremendous as it undermined the strength and resilience of many economic and social resources, particularly for vulnerable people and workers.
In addition, as Vietnam is a very open economy, the slowdown of global growth and demand, as well as financial sector stress and high inflation in major economies, are creating great challenges for the country to protect the vulnerable groups and promote overall social development
The low GDP growth rates recorded in Q1 and H1 at 3.32 per cent and 3.72 per cent respectively suggested the importance and urgency of government interventions and public spending to stimulate the economy.
Binh Duong has seen a significant increase in population and rapid urbanization. It's Public Transport Infrastructure Improvement Project will alleviate traffic congestion and enhance connectivity among cities by improving traffic infrastructure between Binh Duong New City and Suoi Tien Terminal of the Ho Chi Minh City Urban Railway Line 1. This project will also contribute to the achievement of the Sustainable Development Goals (SDGs).
Lam Dong is endowed with favourable natural conditions for agricultural development. The province leaders have determined to develop the province as an advanced agricultural centre in the Central Highlands.
The Medium and Long-term Vision for Vietnam-Japan Agricultural Cooperation has been established to strengthen food value chains in Vietnam. The vision stipulates specific initiatives to promote development of infrastructure related to agriculture, and Lam Dong is one of the model areas in this vision.
The Project for Upgrading Infrastructure for Agricultural Development in Lam Dong Province has been formulated to initially transform the agricultural sector in Lam Dong through the improvement of infrastructure including road networks, irrigation systems, and a flower collection centre to improve the income of farmers and industrialisation of the agricultural sector.
This project will contribute to the achievement of SDGs and is a significant model for agricultural cooperation between Vietnam and Japan.
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