Deputy Minister of Finance Tran Quoc Phuong. Photo: Duc Minh

The signing ceremony took place in Hanoi on June 12, attended by Deputy Minister Tran Quoc Phuong, Japanese Ambassador Ito Naoki, and Japan International Cooperation Agency (JICA) deputy chief representative Ikeda Hiroyuki.

The agreements were signed with Cao Bang, Dien Bien, Lai Chau, Lang Son, Lao Cai, Son La, Thai Nguyen, and Tuyen Quang provinces.

The signing of the on-lending agreements marks the initial step in implementing loans VN24-P1 and VN25-P1, which will finance the Climate-Resilient Infrastructure Development Project to Support Production Activities of Ethnic Minority Communities in the Northern Mountainous and Midland Provinces, as well as the Disaster-Resilient Rural Development Project. Both initiatives will be carried out across the eight provinces.

Speaking at the event, Deputy Minister of Finance Tran Quoc Phuong explained these are the first on-lending agreements to be implemented under the first bilateral loan arrangements signed after Vietnam completed its administrative restructuring and introduced the two-tier local government model.

"These projects carry profound socioeconomic significance, aiming to strengthen resilience to climate change and natural disasters, improve rural infrastructure, promote sustainable livelihoods, and enhance the living standards of ethnic minority communities in disadvantaged areas. These objectives represent the core mission of official development assistance and are among the highest priorities of the Vietnamese state and government," he said.

He added that the signing of the on-lending agreements is not just a legal requirement under the Law on Public Debt Management and relevant government decrees, but also serves as a basis for clearly defining the responsibilities and obligations of people’s committees in managing and effectively utilising borrowed funds, achieving project objectives, and fulfilling debt repayment obligations to the central budget.

The agreements will help strengthen the proactivity and accountability of local authorities, enhance coordination between central and local governments in the management and utilisation of foreign loans, and contribute to ensuring public debt sustainability and national fiscal discipline.

In the presence of Deputy Minister Phuong, Japanese Ambassador Ito Naoki, and JICA deputy chief representative Ikeda Hiroyuki, Nguyen Quoc Phuong, director general of the Department of Debt Management and External Finance, together with leaders of the eight people's committees, signed the on-lending agreements.

Provinces sign agreement to implement and disburse JICA loan funds. Photo: Duc Minh