ODA Loan to Viet Nam - to support economic reform of Viet Nam

September 29, 1999

The Government of Japan has decided to extend an ODA loan of up to a total of 20 billion yen to the Government of the Socialist Republic of Viet Nam to support its further effort for economic reform. Notes to this effect were exchanged on September 29 (Wed) in Hanoi between Mr. Takeshi Nakamura, Japanese Ambassador to Viet Nam, and Mr. Tran Xuan Gia, Minister of Planning and Investment of Viet Nam.
At the Japan-Viet Nam Policy Consultation held in Hanoi in April this year, an agreement was reached between the two countries over (a) formulation of a Private Sector Promotion Program, (b) implementation of Audit of State-owned Enterprises, and (c) Tariffication of Non-tariff Barriers. Later, Finance Minister Kiichi Miyazawa indicated this ODA loan to the Government of Viet Nam when he visited there in May. The signing of the E/N (Notes of Exchange) took place in the wake of the announcement by the Vietnamese side of the Action Plan of the Private Sector Promotion Program, which was the prerequisite for the decision to extend this ODA loan.

  1. Name of loan and maximum amount
    Economic reform support loan .... up to 20 billion yen

  2. Particulars of this ODA loan
    (1) This loan will be provided to support the economic reform efforts by the Government of Viet Nam, as an extension of the New Miyazawa Initiative.
    (2) The fund to be extended will be used to settle accounts with imported materials and machinery, as well as services, which do not fall under the List of Commodities in the Notes Verbales to be exchanged between the Government of Japan and the Government of Viet Nam.
    (3) The counterpart fund of this loan will be used for projects to promote Viet Nam's economic reform policy including that agreed with Viet Nam at the Japan-Viet Nam Policy Consultation (Private Sector Promotion Program, Audit of Large-scale State-owned Enterprises, and Tariffication of Non-tariff Barriers).
    (4) For the monitoring of the counterpart fund, the Vietnamese side will submit reports to the Japanese side on the details of how it has been spent.

  3. Terms and conditions of the loan
    (1) Interest rate: 1.8% per annum
    (2) Repayment period: 30 years (including a 10-year grace period)
    (3) Procurement method: general untied

  4. With the present exchange of Notes, the total of ODA loan that Japan has extended to Viet Nam will be 509,804 million yen (on an Exchange-of-Notes basis).

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