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| Binh Duong receives a loan of more than VND1,100 billion ODA to develop transport infrastructure. |
JICA said that the 3 projects in this ODA loan are related to economic recovery after the pandemic, improvement of transport infrastructure and agricultural development.
In which, the agreement on supporting the budget for the program of socio-economic recovery and development in Vietnam after COVID-19 has the largest value, worth JPY50 billion, equivalent to VND8,750 billion. This is the loan with the most preferential interest rate ever, conducted under the quick disbursement mechanism.
According to JICA, the low growth results of Vietnam in the first half of the year show the importance and urgency of the Government's supportive policies to promote public spending to stimulate the economy. This ODA will provide Vietnam with capital to implement these programs.
The next loan is for the public transport infrastructure improvement project in Binh Duong, worth JPY6.3 billion (about VND1,100 billion), which will develop a rapid bus system connecting Binh Duong - Ho Chi Minh City - Dong Nai, creating a premise for the development of an oriented traffic system along the metro line.
Finally, a loan of JPY4.7 billion (about VND829 billion) will support the agricultural infrastructure of Lam Dong province with sub-projects in the fields of transportation, irrigation and flower trading center.
Statistics from the Ministry of Planning and Investment in March showed that since 1992, Japan has provided aid of over JPY2.7 trillion in ODA loans, including nearly JPY100 billion as non-refundable and approximately JPY180 billion supported for technical cooperation for Vietnam. Japan's ODA accounts for over 30% of bilateral development aid to Vietnam.
Thus, the amount of Japan's ODA aid for Vietnam this time is relatively large compared to the annual average of about JPY90 billion.
This was the result of Prime Minister Pham Minh Chinh's visit to Japan in May. The signing of these 3 ODA loan agreements marks an important milestone towards the 50th anniversary of diplomatic relations between the two countries./.