Of which, 50,000 million yen (equivalent to 8,750 billion VND) is for the Program "General budget support for Vietnam's socio-economic recovery and development after the Covid-19 pandemic".

Although Vietnam's economy has maintained an impressive positive growth rate during the Covid-19 pandemic, especially GDP growth in 2022 reaching 8.02%, the negative impacts of the Covid-19 pandemic have been more subtle but significant, as the pandemic has weakened the strength and resilience of many socio-economic resources, especially affecting vulnerable groups and workers.

Vietnam's Deputy Minister of Finance Vo Thanh Hung (right) and Chief Representative of the Japan International Cooperation Agency Sugano Yuichi signed 3 Loan Agreements.

GDP growth in the first quarter and the first half of 2023 was also recorded at low levels of 3.32% and 3.72%, demonstrating the importance and urgency of the Government's policies to support and promote public spending to stimulate the economy. Therefore, this general budget support will provide the Vietnamese Government with highly concessional capital to implement the post-Covid-19 socio-economic recovery and development program approved by the National Assembly.

The second ODA loan of 6,244 million yen (equivalent to 1,093 billion VND) for the “Improving Public Transport Infrastructure in Binh Duong Province” Project will help reduce traffic congestion and enhance connectivity between cities by improving transport infrastructure connecting Binh Duong New City and Suoi Tien Station of Ho Chi Minh City Urban Railway Line 1; thereby contributing to the socio-economic development of Binh Duong Province. This project contributes to Sustainable Development Goal (SDGs) No. 9 (Industry, Innovation and Infrastructure).

The two sides exchanged 3 Loan Agreements.

The final ODA loan of 4,739 million yen (equivalent to 829 billion VND) for the Project “Improving Infrastructure for Agricultural Development in Lam Dong Province (Phase 1)”. This loan aims to initially transform the agricultural sector of Lam Dong province through improving infrastructure, including the road network (to enhance agricultural product transportation), irrigation systems and Flower Collection Centers, towards the higher goal of increasing farmers’ income and promoting agricultural industrialization. This project will contribute to SDGs No. 2 (Zero Hunger) and No. 12 (Responsible Production and Consumption). The project is an important model in agricultural cooperation between Vietnam and Japan.

The signing of these loan agreements marks another important milestone to celebrate the 50th anniversary of the establishment of Vietnam-Japan diplomatic relations, continuing to affirm the strategic partnership between the two countries, as well as the trust of the Japanese Government and people in the management capacity, project implementation and strong development potential of the country and people of Vietnam.

News and photos: LE QUYNH ANH