Press Releases

Exchange of Notes concerning Yen Loans and Grant Aid to Viet Nam

November 24, 2021

On November 24, Mr.YAMADA Takio, Japan’s Ambassador to the Socialist Republic of Viet Nam, and Mr. Vo Thanh Hung, Deputy Minister of Finance of Viet Nam and Mr. Nguyen Ngoc Dong, Deputy Minister of Transport of Viet Nam exchanged notes concerning one yen loan project of up to 10.813 billion yen in total and one grant aid project of up to 500 million yen , in Tokyo, in the presence of Mr. KISHIDA Fumio, Prime Minister of Japan, and H.E. Mr. Pham Minh Chinh, Prime Minister of Viet Nam. Overview of the projects are as follows.

  1. Yen loan
  • (1) Project name: Second Ho Chi Minh City Water Environment Improvement Project (IV) (10.813 billion yen)
  • (2) This project is to improve sewerage and drainage system in Ho Chi Minh City, where urban industrial and domestic wastewater is increasing due to industrialization and population concentration in urban areas. This cooperation is expected to contribute to lessen the damage caused by flooding and raise the capacity for treating polluted water, through the improvement of sewerage and drainage system in Ho Chi Minh City, thus contributing to an improvement to its urban and living hygiene environment.
  • (3) The terms of the loan are as follows:
  • (i) Interest rate: 1.0% per annum (0.01% per annum for the consulting services)
  • (ii) Repayment period: 30 years (including a 10-year grace period)
  • (iii) Procurement terms: General untied
  1. Grant aid
  • (1) The Economic and Social Development Programme (500 million yen)
  • (2) In Viet Nam, the number of maritime search and rescue for Vietnamese fishing vessels and cargo vessels is increasing, and the shortage of personnel, vessels, and other equipment has become a serious problem.
    Improving Viet Nam's maritime search and rescue capability not only leads to the safety of Vietnamese fishermen, but also to the safe navigation of the ship, as when a ship boarded by a Japanese seafarer or a Japanese cargo ship encounters an accident in the same area, it is possible to receive efficient and prompt search and rescue by a maritime rescue organization.
    This project is to strengthen Viet Nam's maritime search and rescue capability by providing the government of Viet Nam with equipment related to maritime search and rescue, including products of Japanese companies. This cooperation is expected to contribute to the country's economic and social development through social stabilization.
[Reference] Viet Nam covers an area of 329,241 square kilometers (roughly the same as the area of Japan excluding Kyushu), and has a population of 97.62 million and a gross national income (GNI) per capita of 2,660 U.S. dollars (World Bank, 2020).

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