The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the government of the Socialist Republic of Vietnam for two projects in Hanoi, the capital of the country, on May 1. The Loan Agreement (L/A) was signed by Mr. Tran Quoc Phuong, Deputy Minister of Finance of the Socialist Republic of Vietnam, and Mr. Yosuke Kobayashi, Director of JICA’s Vietnam Office.
Mr. Yosuke Kobayashi, Director, Deputy Minister of Finance Mr. Tran Quoc Phuong
Japan has long been cooperating with Vietnam, a strategic partner, through ODA. Vietnam is a country with which Japan has strong trade and economic ties, and in recent years, expectations from Japanese companies have been increasing as one of their major production and investment destinations. Its stable and sustainable development is also important for the deepening of economic relations between Japan and Vietnam.
The Vietnamese government has positioned the improvement of living conditions for vulnerable residents in the mountainous northern region, where there are many poor people, the improvement of the livelihoods of poor households, and addressing climate change as important issues for the sustainable growth of the country as a whole. This project will address these issues, and by supporting the basic livelihood infrastructure of the region, it is expected to strengthen the economic environment and boost social stability in Vietnam, one of Japan’s most important investment and production bases, and contribute to further development of economic cooperation between Japan and Vietnam.
Document exchange ceremony (from left: Prime Minister Koichi Koichi, Director Kobayashi, Vice Minister of Finance Tran Quoc Phuong, and Prime Minister Le Minh Hung) Photo courtesy of the Cabinet Public Relations Office
The projects covered by the yen loan agreement signed this time are as follows
Rural development projects that are resilient to disasters
Project for Disaster Resilient Rural Development
Country (Region)
Socialist Republic of Vietnam (Lao Cai, Dien Bien, Tuyen Quang, Son La, Lai Chau provinces)
Business Objectives
This project aims to improve access to public services and markets, increase agricultural productivity, and reduce flood damage by constructing small-scale basic infrastructure (roads, irrigation, riverbanks) in five provinces in the mountainous northern region, where many poor people live. This will contribute to improving the living environment, reducing disparities, and strengthening the region’s resilience to climate change.
Business
The sub-projects envisaged at this time (a total of 90 projects in 5 provinces are planned) are as follows
(a) Civil engineering work
Small-scale basic infrastructure construction
Road sub-projects: 41 projects (rehabilitation and new construction of provincial and county roads (including small bridges), road surface improvement, drainage improvement, guardrail installation, etc.)
Irrigation sub-projects: 29 (rehabilitation and new construction of water intake facilities, canals, reservoirs, etc.)
Riverbank revetment subprojects: 20 projects (repair and new construction of riverbank revetment facilities)
(b) Consulting services
Detailed design of subprojects, construction supervision, environmental monitoring and progress reporting, assistance in collecting baseline values for operational and effectiveness indicators, and preparation of audit reports.
Loan amount (maximum)
21.59 billion yen
Interest Rates
Main body: 2.25
Redemption period
30 years (including 10 years of deferment)
Procurement Conditions
General untied
Implementing Agency
Supervisory bodies
Lao Cai Provincial People’s Committee
Dien Bien Provincial People’s Committee Thuyen Quang Provincial People’s Committee
Son La Provincial People’s Committee
Lai Chau Provincial People’s Committee
2. implementing agency
Target Ministry’s Yen Loan Management Unit
Contribution to the achievement of the SDGs
Goal 1 (Eliminate poverty)
Goal 2 (zero hunger)
Goal 3 (health and well-being for all)
Goal 10 (Eliminate inequality among people and nations)
Goal 13 (take concrete action on climate change)
Schedule for future project implementation (tentative)
October 2030 (project completion at the time of facility provision)
Climate Change Adaptation Infrastructure Development Project to Support Local Community Production in Northern Mountain and Hilly Areas
Project for Development of Climate Adaptive Infrastructure to Support Production for Ethnic Minority Communities in North Mountain and Midland Area
Country (Region)
Socialist Republic of Vietnam (Tuyen Quang, Thai Nguyen, Lang Son and Cao Bang provinces)
Business Objectives
This project aims to improve access to public services and markets, increase agricultural productivity, and improve sanitary water supply capacity through the development of small-scale basic infrastructure (roads, irrigation, and water supply) in four provinces in the mountainous northern region, where there are many poor people, thereby improving the living environment, reducing inequality, and strengthening resilience to climate change. This will contribute to improving the living environment, reducing disparities, and strengthening the region’s resilience to climate change.
Business
The sub-projects envisaged at this time (a total of 28 projects are planned for the four provinces) are as follows
(a) Civil engineering work
Small-scale basic infrastructure construction
Road subprojects: 19 projects (rehabilitation and new construction of provincial and county roads (including small bridges), road surface improvement, drainage improvement, guardrail installation, etc.)
Irrigation sub-projects: 7 (rehabilitation and new construction of water intake facilities, canals, reservoirs, etc.)
Water supply subprojects: 2 projects (new intake facilities, reservoirs, water pipes, and septic systems)
(b) Consulting services
Detailed design of subprojects, construction supervision, environmental monitoring and progress reporting, assistance in collecting baseline values for operational and effectiveness indicators, and preparation of audit reports.
Loan amount (maximum)
17,666 million yen
Interest Rates
Main body: 2.30%.
Redemption period
30 years (including 10 years of deferment)
Procurement Conditions
General untied
Implementing Agency
Supervisory bodies
Tuyen Quang Provincial People’s Committee
Thai Nguyen Provincial People’s Committee
Lan Son Provincial People’s Committee
Khao Bang Provincial People’s Committee
2. implementing agency
Target Ministry’s Yen Loan Management Unit
Contribution to the achievement of the SDGs
Goal 1 (Eliminate poverty)
Goal 2 (zero hunger)
Goal 3 (health and well-being for all)
Goal 10 (Eliminate inequality among people and nations)
Goal 13 (take concrete action on climate change)
Schedule for future project implementation (tentative)
Scheduled completion of the project: December 2030 (the project will be completed when the facilities are provided)
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