Japan ODA to Vietnam to Hit Record High of $2.5B in 2015

Japan will provide JPY172 billion ($1.4 billion) in official development assistance (ODA) for three projects in Vietnam, raising total Japanese ODA to Vietnam to a record $2.5 billion in the fiscal year 2015. The announcement was made during a meeting between Prime Minster Nguyen Tan Dung and his Japanese counterpart Shinzo Abe upon the former’s arrival in Malaysia to attend the two-day 27th ASEAN Summit and related high-level meetings on Nov. 20. Mr. Abe informed said that three projects in Vietnam are the Ben Thanh-Suoi Tien metro line in Ho Chi Minh City, the Thai Binh Thermal Power Plant in the northern province of Thai Binh and a project to improve water clean environment in HCM City. Japan, the biggest bilateral donor of ODA for Vietnam, has pledged to provide over $21 billion in ODA for Vietnam, primarily in infrastructure development and climate change response. ODA is one of the key sources of dollars for Vietnam after exports, foreign direct investment (FDI) and remittances. Experts, however, advise Vietnam to reduce the use of ODA to avoid a debt burden in the future. (Thoi Bao Kinh Doanh Nov 23 p1, http://vovworld.vn/ Nov 21, http://baochinhphu.vn/ Nov 21)