Deputy Minister of Planning and Investment Tran Quoc Phuong

At the Vietnam-Japan High-Level Economic Conference on March 7 in Hanoi, Deputy Minister of Planning and Investment Tran Quoc Phuong affirmed that the Vietnam-Japan relationship was one of the most successful bilateral development cooperation relationships in recent years.

To promote the development cooperation relationship between the two countries, the Ministry of Planning and Investment (MPI) proposed the two sides further promote official development assistance (ODA) cooperation.

Secondly, the two sides will continue to closely coordinate to handle obstacles on a number of projects using Japanese ODA in Vietnam.

Thirdly, the deputy minister suggested the Japanese side provide large loans with high incentives, and simple and flexible procedures for Vietnam's large-scale projects of inter-regional nature, focusing on areas such as transport infrastructure, climate change response, digital transformation, and health.

According to the MPI, since 1992, with over 2.7 trillion yen in ODA loans, nearly 100 billion yen in non-refundable aid and approximately 180 billion yen in support for technical cooperation, Japan's ODA accounts for over 30 per cent of bilateral development aid to Vietnam.

"Japan's ODA plays an important role in Vietnam's socioeconomic development, including implementing large-scale infrastructure development projects, a driving force to promote sustainable socioeconomic development," Phuong said.

A number of outstanding large-scale infrastructure construction projects that have been built with Japanese assistance include international airports (Noi Bai and Tan Son Nhat), seaports (Cai Lan, Lach Huyen, Danang, and Cai Mep-Thi Vai), bridges (Thanh Tri, Nhat Tan, Can Tho), and national highways.

Japanese ODA also contributes to advanced technology transferring like satellite assembly, bridge and road construction techniques, and human resource training for Vietnam.

The ODA indirectly or directly creates favourable conditions to attract foreign investment, especially from Japan, by developing large-scale infrastructure construction projects in important fields such as electricity generation, water supply and drainage, and transportation.

Such ODA also contributes to poverty reduction. Infrastructural and FDI projects of Japan have created numerous jobs in rural areas.

Vietnam-Japan High-Level Economic Conference on March 7

To successfully implement the country's socioeconomic development strategy, especially the implementation of three strategic breakthroughs, ODA and foreign concessional loans continue to be necessary and important resources in the new development of Vietnam.

However, Phuong said that in addition to the achieved results, there were still difficulties and obstacles in some programmes and projects, which require more efforts on both sides.

"Based on the deep strategic partnership, and the common perceptions of the two countries' senior leaders, Vietnam-Japan development cooperative relationship will continue developing, contributing to enhancing relationship of the two countries," he said.