JICA Supports Many Public Investment Projects in Vietnam

10:05:50 AM | 10/11/2020

JICA wants to further support Vietnam’s socioeconomic development through ODA, focus on JICA's outstanding projects in fields that match development guidelines of the Government of Vietnam to fulfil the dual target of “Preventing epidemics and maintaining economic growth”.

Following the direction of the Government of Vietnam that public projects should not be delayed during the time of social distancing, despite the impact of the COVID-19 epidemic, JICA has continued to carry out ODA-funded construction projects and kept jobs for Vietnamese engineers working for these projects, thus contributing to economic recovery.

Vietnam currently lacks basic infrastructure in many fields to create momentum for future development. COVID-19 has disrupted global supply chains and the shift is giving Vietnam new opportunities on the one hand, but it also provides opportunities for other countries to restructure their systems, speed up infrastructure investment and increase international competitiveness on the other.

High-quality basic infrastructure development plays an important role in foreign investment attraction. Through ODA loans, JICA wishes to contribute more to Vietnam’s economic development.

In the first half of 2020, heavily affected by the COVID-19 epidemic, ODA-funded infrastructure projects are still deployed on schedule. The “overpass construction investment in Mai Dich - Nam Thang Long section on the Ring Road 3 of Hanoi City” project opened for traffic in October 2020. The first train cars of the “Ho Chi Minh City Railway Construction Project (Line 1: Ben Thanh - Suoi Tien) are expected to arrive in Vietnam this month. The largest package of the project “Yen Xa wastewater treatment system, Hanoi City” project - wastewater treatment area construction - was officially started.

Vulnerable communities in society are more severely affected by the COVID-19 epidemic and JICA has thus been carrying out projects to reduce the income gap through infrastructure development, not only in urban areas but also in rural areas.

Japan’s ODA loan agreement for “Marine security capability improvement” project was signed in July 2020. This was the first ODA loan agreement that Japan signed with Vietnam in three years.

The “Second Transport Sector Loan for National Road Network Improvement” Project completed restoring and reconstructing 98 weak bridges on many national highways in many provinces and cities nationwide in July 2020. Although they were small bridges, they create favorable conditions for mobility and significantly improve people’s livelihoods. These public projects are in line with the Government's list of priorities for socioeconomic development. In addition, JICA has been supporting Vietnam in many fields such as agriculture, human resource development, economics, governance and response to climate change to attract foreign investment into Vietnam and develop the economy.

In addition, in the perspective of foreign investment attraction, we have carried out a technical cooperation project to strengthen the capacity of enhancing equity and transparency of Vietnam's stock market, improving the capacity of the State Securities Commission, the Hanoi Stock Exchange (HNX) and the Hochiminh Stock Exchange (HOSE), and promoting the transparency of information disclosure in corporate financial accounting Industry to prepare for adoption of the International Financial Reporting Standards (IFRS).

While containing the contagion of the COVID-19 epidemic, attention has also been paid to medical care and prevention of the spread of infectious diseases. Compared with other countries in the same field and the same type of healthcare cooperation with JICA, the one for Vietnam is much better in quality and quantity. To meet requirements of the new context, JICA will strengthen health cooperation. JICA will extend cooperation by further utilizing valuable experiences it has gained in Vietnam.

JICA will work closely with the Government of Vietnam to further support the country in both hardware (material construction) and software (technical cooperation) to contribute more to Vietnam’s development.

By Shimizu Akira, Chief Representative of JICA Vietnam Office, Vietnam Business Forum