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Speaking at the seminar, Deputy Minister of Finance Tran Quoc Phuong said that Vietnam has issued the National Green Growth Strategy for 2021-2030, with a vision to 2050, leading to a very large demand for financial resources in the coming period.

According to experts, the total financial demand for Vietnam’s emission reduction measures by 2030 is estimated at around 68.75 billion USD. Of this, domestic resources are expected to meet more than 24.7 billion USD (36%), while the remaining approximately 44 billion USD (64%) will require international support.

High-level seminar on new generation ODA between JICA and the Ministry of Finance of Vietnam. (Photo: JICA Vietnam)

In that context, Vietnam hopes that partners, especially Japan, will continue to accompany and support not only financially but also in technology and human resources. Japan is considered a country with extensive experience in green transition and climate change adaptation, opening up opportunities for deeper cooperation between the two countries.

Japan’s Ambassador to Vietnam Ito Naoki emphasized that this program loan marks the beginning of new initiatives, contributing to efforts toward achieving net-zero emissions in Vietnam, while also aligning with the Asia Zero Emission Community (AZEC) initiative.

According to the ambassador, through coordination among multiple agencies, including JICA Vietnam, Japan will continue to support Vietnam in accelerating its green transition, particularly through policy support and the provision of financial resources.

Providing further details, Kobayashi Yosuke, Chief Representative of JICA in Vietnam, said that a key highlight of the new generation ODA loan is the significant shortening of preparation and disbursement time. While traditional ODA projects often take years to complete procedures, this loan requires only about eight months from proposal (late July 2025) to initial agreement between the two governments, with disbursement expected as early as 2026.

Kobayashi Yosuke, Chief Representative of JICA in Vietnam. (Photo: JICA Vietnam)

The loan also opens opportunities to form a 50-billion-yen-scale market, combining Vietnam’s financial resources with Japan’s technology and experience. This enables agencies and businesses of both countries to implement specific projects, thereby improving policy implementation effectiveness.

At the seminar, Duong Hung Cuong, Director General of the Department of Debt Management and External Finance (Ministry of Finance), presented the policy framework of the loan, featuring 25 specific actions centered on three main pillars.

First, improving financial and investment mechanisms and policies for green transition, including adjustments to tax policies, public investment, development of carbon credit markets, green bonds, and promotion of green credit.

Second, developing and implementing policies to fulfill Nationally Determined Contributions (NDCs), such as carbon market development, greenhouse gas inventories, energy transition promotion, improvement of legal frameworks for electricity and renewable energy, and advancement of the circular economy, particularly in waste management.

Third, enhancing climate change adaptation capacity and post-disaster recovery through improving legal systems, strengthening response capacity, and supporting recovery after extreme events.

According to Duong Hung Cuong, Vietnam’s policy system is gradually forming a relatively comprehensive framework for green transition. However, to ensure effective implementation, stronger coordination is needed among ministries, sectors, localities, the private sector, and international partners, along with improvements in data systems, monitoring, and evaluation mechanisms.

At the seminar, representatives of Japanese enterprises also introduced various advanced technological solutions that could be implemented in Vietnam, contributing to green growth and enhancing disaster resilience.

According to Deputy Minister Tran Quoc Phuong, the 50-billion-yen loan will focus on supporting Vietnam in developing financial and investment policies for green projects, improving access to resources such as green bonds and green credit for businesses, and supporting the implementation of international commitments on greenhouse gas emission reduction and climate resilience.

The seminar is expected to lay a foundation for promoting Vietnam-Japan cooperation in green transition, contributing to the realization of sustainable development goals in the coming period.

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