East Asia consists of a variety of nations, which include countries such as the Republic of Korea and Singapore, which have already attained high economic growth and transitioned from the category of aid recipients to that of donors; least developed countries (LDCs) such as Cambodia and Laos; countries such as Indonesia and the Philippines, which still show large income disparities domestically despite dramatic economic growth; and countries such as Viet Nam, which are shifting to a market-driven economy. Japan has close relationships with these countries in all aspects of politics, economy, and culture, hence the stability and development of the region significantly impacts the security and prosperity of Japan as well. From this perspective, Japan is engaging in development cooperation activities that respond to the diverse socio-economic circumstances of East Asian countries and to the changes in the type of development cooperation required.

■Japan’s Efforts

Japan has contributed to the remarkable economic growth of East Asia by implementing development cooperation that combines ODA with trade and investment, including the development of socio-economic foundations through the quality infrastructure development, support for the development of institutions and human resources, promotion of trade, and revitalization of private investment. In recent years, Japan aims to further enhance open regional cooperation and integration while sharing basic values, to promote mutual understanding, and to maintain consistent regional stability. Therefore, Japan strives to proactively provide assistance in areas such as disaster management, environment and climate change, strengthening the rule of law, health and medical care, and maritime safety, in parallel with the assistance for developing infrastructure. Japan is also working to promote mutual understanding through large-scale youth exchanges, cultural exchanges, and projects to spread Japanese language education. In order for Japan and other East Asian countries to achieve further prosperity, it is important to assist Asia to become “a center of growth open to the world.” Accordingly, Japan is providing assistance to strengthen Asia’s growth and to expand domestic demand in each country.

●Support for Southeast Asia

The countries of the Association of Southeast Asian Nations (ASEAN) (Note 1) are located on Japan’s sea lanes and have strong economic ties with Japan as 12,000 Japanese companies (business establishments) have entered the region’s markets as of October 2017. The ASEAN region is of great importance for Japan both on the political and economic fronts. The ASEAN Community comprised of the “Political-Security Community,” “Economic Community,” and “Socio-Cultural Community” was launched in 2015, and it has made effort to strengthen connectivity and narrow the development gaps within the region. In light of ASEAN’s efforts, Japan has provided assistance through ODA in a range of areas such as infrastructure development, the rule of law, maritime safety, disaster management, health and medical care, and peacebuilding, based on the pillars of strengthening connectivity and narrowing the development gaps. To date, Japan’s ODA for ASEAN countries has further amounted to a total of approximately ¥17.93 trillion. Moreover, Japan announced the provision of ¥2 trillion ODA over a five-year period at the ASEAN-Japan Commemorative Summit Meeting held in 2013, but has since rendered assistance that has already surpassed that pledge. The ODA assistance has also induced more than ¥8 trillion of investment by Japanese companies over the last five years. At the 21st ASEAN-Japan Summit to Commemorate the 45th Anniversary of ASEAN-Japan Friendship and Cooperation, held in November 2018, as stated by the ASEAN countries, Japan’s efforts have been highly appreciated by ASEAN.

Prime Minister Shinzo Abe at the commemorative photo session during the ASEAN-Japan Summit Meeting (Photo: Cabinet Public Relations Office of the Government of Japan)

With regard to strengthening connectivity, Japan does not only develop physical infrastructure but also aims to realize “vibrant and effective connectivity,” which maximizes infrastructure productivities through the institutional reform and technology transfer to the local people. At the ASEAN Summit Meetings held in 2016, the “Master Plan on ASEAN Connectivity 2025”* was adopted, succeeding the “Master Plan on ASEAN Connectivity,” which aimed to strengthen “physical connectivity,” “institutional connectivity,” and “people-to-people connectivity” in the region. Japan will continue to support ASEAN connectivity based on this new master plan.

In terms of infrastructure development, Japan underscores the importance of “quality infrastructure investment” that is in accordance with international standards, based on its past experience of assisting Southeast Asian countries.

Prior to the G7 Ise-Shima Summit held in 2016, Prime Minister Abe announced the “Expanded Partnership for Quality Infrastructure,” and declared the goal for the next five years, that is to finance approximately $200 billion in a comprehensive Japanese effort for infrastructure projects across the world, and to advance further institutional reforms.

Also, alongside the support that is tailored to the needs of each country, Japan has been implementing the Project for Strengthening the ASEAN Regional Capacity on Disaster Health Management (ARCH Project) since 2016, targeting the entire ASEAN region. Ongoing efforts are being made to enhance governments’ coordination capacity in the field of disaster health management with the aim of establishing a coordination structure among the ASEAN communities.

Furthermore, at the ASEAN-Japan Summit Meeting in 2015, Prime Minister Abe announced the “Industrial Human Resource Development Cooperation Initiative,” under which Japan would assist the development of 40,000 industrial human resources over the next three years, with the belief that in addition to infrastructure development, the development of the industrial human resources that would establish and upgrade the key industries of each country is essential for sustainable growth in Asia. As of 2018, Japan had developed approximately 80,000 industrial human resources in the Asian region. Moreover, at the Japan-ASEAN Summit Meeting in November 2018, Japan announced its new plan to train an additional 80,000 people with a view to the next five years, in areas including the digital field, such as AI, under the “Industrial Human Resource Development Cooperation Initiative 2.0.” Also, in order to contribute to the unity and centrality of ASEAN through technical cooperation, Japan also took the opportunity of the Japan-ASEAN Ministerial Meeting to affirm a substantial agreement on the Japan-ASEAN Technical Cooperation Agreement. Japan will continue to actively support the development of industrial human resources in Asia. In addition, Japan has been implementing the “Innovative Asia” initiative, which supports the circulation of competent human resources in Asian countries including ASEAN with ODA, through studying abroad at Japanese graduate schools or other institutions, and internships at Japanese companies, etc., with the aim of promoting innovation in Asia including Japan. Within the five years from FY2017 to FY2021, Japan aims to accept approximately 1,000 people from all across Asia under this project.

With regard to the Mekong region (Note 2) which has distinct, great potential for development among the ASEAN countries, the Mekong-Japan Summit Meeting is annually hosted by Japan and is held in Tokyo every three years, where the leaders adopt an aid policy framework toward the region. In October 2018, the Mekong-Japan Summit Meeting was held in Tokyo, during which the Tokyo Strategy 2018 for Mekong-Japan Cooperation was adopted. This Strategy sets out the direction for future cooperation between the Mekong region and Japan, and establishes the following three pillars for advancing cooperation: (1) Vibrant and effective connectivity, (2) People-centered society, and (3) Realization of a Green Mekong.

Through cooperation in these three areas, this Strategy also sets the following three goals: (1) Realization of the Sustainable Development Goals (SDGs), (2) Realization of a free and open Indo-Pacific, and (3) Cooperation with the Ayeyarwady - Chao Phraya - Mekong Economic Cooperation Strategy (ACMECS), which is the economic cooperation framework among the Mekong countries. It then specifies concrete projects that can contribute to the realization of these three goals, as the action plan of the Strategy. Mekong countries expressed their high appraisal of Japan’s cooperation to date, including its commitment toward completing the implementation of ODA of more than 750 billion yen over the past three years.

The 10th Mekong-Japan Summit Meeting held in Tokyo in October 2018 (Photo: Cabinet Public Relations Office of the Government of Japan)

Taking into account that Myanmar has been making significant progress to advance democratization among the Mekong countries, in 2012, Japan reviewed its economic cooperation policy in order to back up the rapid process of its reform efforts, and has been providing a wide range of assistance to Myanmar, based on the following three pillars: (i) Improving quality of life of the nationals including assistance for ethnic minorities, (ii) Assistance for legal and judicial systems development, and human resources development, and (iii) Infrastructure development. In particular, Japan is offering cooperation at the public and private levels to develop the Thilawa Special Economic Zone (SEZ) located in the suburbs of Yangon, Myanmar’s largest city, while the Government of Japan is contributing to the development of the surrounding infrastructure through ODA. As of January 2019, 101 companies from around the world (of which 52 are Japanese companies) have started their business in the SEZ, while 68 companies (of which 40 are Japanese companies) have already commenced operations. This is a successful example which shows how Japan’s “quality infrastructure investment” earned trust from the world.

Furthermore, in order to promote peace with ethnic minorities, Japan is providing support for reconstruction and development in the southeastern part of Myanmar, where a ceasefire has been achieved. This includes the development of housing and basic infrastructure, and providing guidance on agricultural technology. In the Rakhine State located in the western part of Myanmar, from where more than 700,000 people were displaced in 2017, Japan focuses on providing humanitarian and development assistance to improve local conditions, as well as to promote the safe, voluntary, and dignified return of displaced persons.

●Vietnam

Terminal 2 Construction Project in Noi Bai International Airport
Loan Aid (March 2010 – December 2014)

3rd floor departure lobby of the improved terminal 2 (Photo: JICA)

Driven by increased foreign investment and exports, Vietnam has achieved rapid economic growth since the 1990s. As a result, Vietnam has seen a sharp increase in air passenger traffic in its major cities, especially in Hanoi, the capital, and Ho Chi Minh City. In particular, there has been a surge in air passenger traffic at Noi Bai International Airport, the gateway to Hanoi, and consequently the number of its passenger terminal users (approximately 9.5 million in 2010) has been far exceeding the initial plan (6 million per year).

Under the “Terminal 2 Construction Project in Noi Bai International Airport” which was implemented from 2010, the second passenger terminal was built and the associated facilities were renovated, to accept as many as 10 million passengers per year. Not only the renovation of the airport infrastructure, thanks to the transfer of Japanese-style know-how on airport operation, the project also improved airport services vastly in areas such as fueling, hand luggage control, and commercial facilities development. Noi Bai International Airport was selected as “Number 1” in the “World’s Most Improved Airports” in the 2016 edition of the “World’s Top 100 Airports” published by a UK air service research company.

Although Vietnam continues to grow economically, domestic infrastructure improvement is still insufficient to accommodate the infrastructural demands in the transportation sector. Japan will continue to support the sustainable growth of Vietnam through both hard and soft infrastructure improvements.

●Relations with China

Even in recent years, ODA to China has played a significant role in strengthening Japan and China relations. During Prime Minister Abe’s visit to China in October 2018, the Government of Japan announced the termination of Japan's provision of new ODA to China, and the promotion of a new stage of bilateral cooperation, such as holding dialogues and personnel exchanges in the area of development. This has been announced under the recognition that it is time for Japan and China to work shoulder to shoulder for contributing to the region and international community’s prosperity as equal partners. With this announcement, the adoption of new ODA to China has ended in FY2018, and all ongoing projects that have already been adopted and which last several years will be concluded with effect from the end of FY2021.

In recent years, ODA to China has been implemented to a very limited extent only in areas with genuine needs for cooperation, such as cross-border pollution, infectious diseases, and food safety, which directly affect the lives of the Japanese people. The assistance was carried out as technical cooperation (disbursements of ¥404 million in FY2017) (Note 3) and Grant Assistance for Grass-Roots Human Security Projects (disbursements of ¥9.95 million in FY2017) (Note 4).

With regard to technical cooperation, for example, Japan is implementing projects to tackle environmental problems focused on air pollution including PM2.5, which has raised concerns about its impact on Japan, and projects to support the drafting of civil laws, patent laws, etc. in China that contribute to facilitating the business activities of Japanese companies operating in China.

Furthermore, as a new form of cooperation that takes into account the economic development of China, Japan has recently been providing cooperation in which its costs are borne by China. For example, China bears the costs related to support such as technical cooperation for capacity-building in the area of the diagnosis of asbestos-related cancers, which began in 2018, and the assistance for the promotion of disaster risk reduction education as well as the provision of instruction on quake-resistant and seismic isolation technologies in the areas afflicted by the Lushan earthquake that occurred in Sichuan Province in 2013.

With regard to Grant Assistance for Grass-Roots Human Security Projects, Japan has provided support in supplying equipment needed for conducting eye examinations for children and middle-aged and senior citizens in Xinjiang Uyghur Autonomous Region in FY2017, as a part of its support that benefits ethnic minority regions at the grassroots level.

1. Note 1: ASEAN member states: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam (however, Singapore and Brunei are not ODA recipients).
2. Note 2: Cambodia, Laos, Myanmar, Thailand, Viet Nam
3. Note 3: Track records of technical cooperation in recent years ¥3.296 billion (FY2011), ¥2.527 billion (FY2012), ¥2.018 billion (FY2013), ¥1.436 billion (FY2014), ¥806 million (FY2015), ¥500 million (FY2016), ¥404 million (FY2017)
4. Note 4: Track records of Grant Assistance for Grass-Roots Human Security Projects in recent years ¥843 million (FY2011), ¥288 million (FY2012), ¥284 million (FY2013), ¥85 million (FY2014), ¥107 million (FY2015), ¥29 million (FY2016), ¥9.95 million (FY2017)

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