Vietnam-Japan Sign ODA Loan Agreements for Climate-Resilient Infrastructure Projects

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The signing ceremony was conducted through an exchange of documents on the occasion of the official visit to Vietnam by Japanese Prime Minister Takaichi Sanae, between Deputy Minister of Finance Tran Quoc Phuong and Kobayashi Yosuke, Chief Representative of the JICA Vietnam Office.

The two ODA loan agreements are intended to support the implementation of small-scale infrastructure projects, contributing to enhanced resilience to climate change and natural disasters, while improving livelihoods for people in disadvantaged areas.

Kobayashi Yosuke, Chief Representative of the JICA Vietnam Office, signed the ODA loan agreements of the Japanese Government to support the implementation of two small-scale infrastructure development projects in the northern midland and mountainous regions of Vietnam. (Photo: Nhan Dan Newspaper)

The first project, titled “Disaster-resilient rural development,” will be implemented in the provinces of Lao Cai, Dien Bien, Tuyen Quang, Son La, and Lai Chau. The project focuses on developing and upgrading small-scale infrastructure to strengthen disaster resilience, improve living conditions, and support local production. Its main components include the construction and rehabilitation of approximately 90 works such as transport infrastructure, irrigation systems, and riverbank protection embankments, along with technical consultancy and supervision activities.

The maximum loan amount for this project is 21,590 million Japanese yen, with an annual interest rate of 2.25 percent, a loan term of 30 years, including a 10-year grace period.

The second project, titled “Climate-resilient infrastructure development to support production for ethnic minority communities,” will be implemented in the provinces of Tuyen Quang, Thai Nguyen, Lang Son, and Cao Bang. It aims to improve living conditions and enhance climate resilience through the development of essential infrastructure such as transport, irrigation, and water supply systems.

The project comprises 28 component subprojects, focusing on improving access to services, supporting production, and enhancing living conditions for people in areas with large ethnic minority populations. The maximum loan amount is 17,666 million Japanese yen, with an annual interest rate of 2.30 percent, a loan term of 30 years, including a 10-year grace period.

The total value of the two loans amounts to nearly 39.3 billion Japanese yen, focusing on the development of transport, irrigation, water supply infrastructure, and community protection works in disadvantaged areas.

The projects will be managed by the People’s Committees of the relevant provinces, with local ODA Project Management Units directly responsible for implementation. They are expected to be completed by 2030, when all components are put into operation.

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