(VNA) Official development assistance (ODA) has always been a success story in the Viet Nam-Japan relations, especially as the two nations are heading forward a long-term strategic relationship.
Japan has over the recent years been the leading ODA donor for Viet Nam, providing more than 1.3 trillion yen (roughly 12 billion USD) in the 1991-2006 period. Japan’s ODA commitment made by late 2007 topped 123 billion yen, a significant rise compared with its commitment of more than 103 billion yen in 2006.
In a recent visit to Viet Nam, the Japanese Finance Minister Fukushiro Nukaga has reiterated that the Japanese government is considering the implementation of three large-scale infrastructure projects in Viet Nam that use Japanese development assistance, including the Hoa Lac high-tech park, the North-South express railway and the North-South Highway.
In the meeting with Prime Minister Nguyen Tan Dung on January 7, the Japanese Minister also made a pledge that Japan would continue its support to help its Southeast Asian partner reduce poverty and develop infrastructure.
"Viet Nam is the only case and the only country that has been enjoying continuously increasing development assistance from Japan ,” Japanese Ambassador to Viet Nam Norio Hattori told a Vietnam News Agency as saying.
Of 123 billion yen commitment to Viet Nam in 2007, Japanese ODA loan for Viet Nam increased about 20 percent over 2006.
Ambassador Norio Hattori attributed this ODA increase to the fine relations between Japan and Viet Nam, which were defined as strategic partnership by the prime ministers of the two countries in October 2006.
He also noted that Japan decides to increase its development assistance to Viet Nam as Viet Nam integrates further into the world economy, more resources will be needed for improvement of the national competitiveness and acceleration of Viet Nam’s institutional reforms.
Japan, as well as other international donors, appreciates that Viet Nam is a good ODA recipient, the Japanese Ambassador added, “I would say that we are rather satisfied with the way Viet Nam has used our money,” but a concern over the slow disbursement of the ODA still remains.
Despite increasing its ODA loan to Viet Nam, Japan is slightlly reducing its non-refundable assistance compared with last year. This is not the only case for Viet Nam but a common trend that is happening to other countries in the world, especially the middle-income countries, Ambassador Norio Hattori explained. “Vietnam is approaching the middle-income countries and there are other poorer countries that need more grant assistance than Viet Nam.”
At the same time, he also said Viet Nam now has huge needs for infrastruture projects such as roads, airports, ports and power station, which are best suited for receiving ODA loans as they are capable of generating profits.
Japan’s aid to Viet Nam in the non-profit areas such as health, education and poverty reduction has been effectively benefited to Vietnamese people.
Both Vietnamese Prime Minister Nguyen Tan Dung and President Nguyen Minh Triet have recognised the importance of Japanese assistance in the attainment of Viet Nam’s socio-economic successes over the years. They particularly highlighted Japan’s support in three infrastructure projects that have strategic meaning to the country’s economic development in the future.
President Nguyen Minh Triet and Japan’s newly appointed Prime Minister Yasuo Fukuda agreed on a cooperation project on building up a strategic partnership between the two countries in November 2007, in which the Japanese PM reiterated his support to Viet Nam through continued assistance to help improve Vietnamese people’s living standards, promote economic growth, resolve social issues and those relating to institutional mechanism.