Announcement of Japanese Assistance at the Viet Nam Consultative Group Meeting - Assistance for Strengthening Structural Reform in Addition to Infrastructure Improvement

December 9, 1998

1. On December 7 (Mon.) and 8 (Tue.), at the Sixth Viet Nam Consultative Group Meeting, held in Paris under the auspices of the World Bank, the Government of Japan, through its delegation headed by Mr. Katsunari Suzuki, Japanese Ambassador to Viet Nam, pledged assistance totaling about 102,300 million yen.
   
   
2. The Meeting, attended by 22 countries including the U.K., France, and Germany, and six international organizations, such as the Asian Development Bank (ADB) and the International Monetary Fund (IMF), exchanged opinions on the recent economic and social developments and challenges, rural development and poverty reduction, the ODA implementation and partnerships, etc.
   
   
3. Maintaining its policy of actively supporting Viet Nam's efforts for economic reform and the shift to a market economy now being made under Viet Nam's "Doi Moi" (reform) policy, Japan announced assistance for the projects listed below, which include those benefiting the structural reform so as to assist Viet Nam's economy, which has been affected by the Asian economic crisis.
   
   
4. (1) ODA loans: 88,000 million yen
   Assistance will be extended for reform in the fields of urban development, rural and agricultural development, and finance, as well as for infrastructure improvement (eight projects) centering on electricity generation and transportation, which are big obstacles to the country's socioeconomic development:
   
   (a) Pha Lai Thermal Power Plant Project (IV)
   (b) Phu My Thermal Power Plant Project (IV)
   (c) Hai Van Tunnel Construction Project (II)
   (d) Dai Ninh Hydro Power Plant Project
   (e) Da Nang (Tien Sa) Port Improvement Project
   (f) National Highway No. 1 Bridge Rehabilitation Project (II)
   (g) Can Tho Bridge Construction Project
   (h) Hanoi Red River (Thanh Tri) Bridge Construction Project
   (i) Hanoi transportation System Development Project
   (j) Rural Infrastructure Development and Living Surroundings
   Improvement Project (III)
   (k) Two-step Loans for Small and Medium Enterprises Project
   
   (2) Grants-in-aid: about 6,000 million yen (FY 1998 results)
   
   In terms of grant assistance for general projects, Notes have already been exchanged for the following projects other than those for rural development, education, medical care, and agriculture:
   
   (3) Technical cooperation (including development surveys)
   
   (a) Development of human resources is an important factor in the economic development of Viet Nam. For this fiscal year, Japan will invite a total of 209 trainees from Viet Nam and dispatch 73 Japanese experts and 11 Japan Overseas Cooperation Volunteers to the country.
   (b) For cooperation in development surveys, a total of 14 projects will be implemented for master plans and feasibility studies in such fields as transportation, agriculture, and the environment.
   
   

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