Japan Lends Vietnam US$746Mln for Development Projects

Japan Lends Vietnam US$746Mln for Development Projects

Japan, Vietnam's biggest donor, on March 31 announced it had signed a loan worth JPY80 billion (US$746 million) for Vietnam to help it develop infrastructures, improve the environment and facilitate business expansion.

Japanese Ambassador Notorio Hattori and Vietnamese Minister of Planning & Investment Vo Hong Phuc exchanged diplomatic notes on the issue in Hanoi on March 31.

On the same day, in Tokyo, governor of the Japanese Bank of International Co-operation (JBIC), Kyosuke Shinozawa, and Vietnam’s Deputy Finance Minister Le Thi Bang Tam signed six credit agreements on six programs and projects.

Under the agreement, the preferential loan will be allocated to six programs and projects.  These include: on-going construction of the East-West Boulevard in Ho Chi Minh City (JPY19.07 billion), building of the Cai Met-Thi Vai international port (JPY36.036 billion), construction of a section of road from Hanoi to the northern province of Thai Nguyen (JPY12.47 billion), expansion of a thermo-electric power plant in the northern province of Ninh Binh JPY4.43 billion), treatment of sewage and garbage in the northern port city of Haiphong (JPY1.52 billion) and the second phase of the small-and medium-sized enterprise (SMEs) assistance program (JPY6.15 billion).

The loans from the Japanese Government are for 30 years with a 10-year grace period, with interest rates between 0.4 per cent and 1.3 per cent per annum.

"The implementation of these projects will strengthen the economic base of Vietnam," the statement quoted Japanese ambassador to Hanoi, Norio Hattori.

"Although Japan has been facing financial difficulties in recent years, we still continue to provide assistance to Vietnam in a bigger scale than previous years," he said.

In December Japan pledged a total of US$902 million in aid for Vietnam in 2005, an 8 per cent rise over its official development assistance commitments for 2004. It was part of a US$3.44-billion pledge from international donors.

VNS