Global Issues & ODA
Exchange of Notes Concerning One Yen Loan and Two Grant Aid Projects to the Socialist Republic of Viet Nam
(Contributing to "alleviating traffic congestion and air pollution," "improving the quality of medical services," and "human resource development" in Viet Nam)
(Photo: Cabinet Public Affairs Office)
(Photo: Cabinet Public Affairs Office)
(Photo: Cabinet Public Affairs Office)
On December 16, at the Japan-Viet Nam Summit Meeting held on the occasion of the ASEAN-Japan Commemorative Summit Meeting, in the presence of Mr. KISHIDA Fumio, Prime Minister of Japan and Mr. Pham Minh Chinh, Prime Minister of the Socialist Republic of Viet Nam, an exchange of notes was held between Mr. YAMADA Takio, Ambassador Extraordinary and Plenipotentiary of Japan to the Socialist Republic of Viet Nam and Mr. Le Tan Can, Deputy Minister of Finance of the Socialist Republic of Viet Nam, Ms. Dao Hong Lan, Minister of Health of the Socialist Republic of Viet Nam, and Mr. Nguyen Kim Son, Minister of Education and Training of the Socialist Republic of Viet Nam, regarding one yen loan [see Note 1] of up to 41.2237 billion yen and two grant aid projects up to 2.51 billion yen in total.
(Note 1) Yen loan: Cooperation in the form of loans to developing countries for infrastructure and other financially necessary funds under moderate conditions (low interest rates and long repayment periods). For developing countries, since the funds are subject to repayment to Japan, it is expected to lead to effective utilization and self-sustaining development. In addition, Japanese technology will be utilized in vehicles and in signaling and communication systems under Japan's Special Terms for Economic Partnership (STEP) ［see Note 2］.
(Note 2) STEP: The STEP was introduced in July 2002 to promote Japan's "visible assistance" through technology transfer to developing countries by utilizing Japan's excellent technologies and know-how.
1. Yen loan (The Ho Chi Minh City Urban Railway Construction Project (Ben Thanh - Suoi Tien Section(Line 1)) (IV) (up to 41.2237 billion yen))
- This project aims to build an urban railroad and related facilities in Ho Chi Minh City, the largest city in Viet Nam, to alleviate traffic congestion and air pollution in the Ho Chi Minh City metropolitan area, thereby contributing to strengthening the growth and competitiveness of the local economy and improving the urban environment.
- Loan terms are as follows;
- Interest rate: 0.1% per annum (0.01% annum for the consulting services portion)
- Repayment period: 40 years (including a 10-year grace period)
- Procurement terms: Japan tied
2. Grant aid
- The Project for the Improvement of Medical Equipment at National Cancer Hospital (up to 1.83 billion yen)
This project aims to improve medical equipment at the National Cancer Hospital in Hanoi, the largest cancer hospital in Viet Nam, to strengthen the diagnostic system and improve accessibility, thereby improving the quality of medical services at the hospital and in the northern and central regions of Viet Nam and contributing to addressing vulnerabilities in the country's health care system. - The Project for Human Resource Development Scholarship (up to 685 million yen)
This program aims to support young Vietnamese government officials who are expected to play an active role in the core of the Vietnamese government to obtain a master's or doctoral degree at a Japanese graduate school, thereby contributing to solving the country's development issues and strengthening bilateral relations through the establishment of human networks.
The Socialist Republic of Viet Nam has an area of 329,241 square kilometers (approximately the same size as the area of Japan excluding Kyushu), a population of about 99.46 million (2022, General Department of Statistics of Viet Nam), and a gross national income per capita of US$4,010 (2022, World Bank).