JICA holds Mid-term Press Conference

The Japan International Cooperation Agency (JICA) recently held a Mid-term Press Conference to share the highlights of activities during the first half of the 2023 fiscal year (from April 1, 2023 to September 30, 2023) in Vietnam.

The press conference aimed to reflect on the achievements, existing challenges, and the development support direction for Vietnam in the second half of the 2023 fiscal year (from October 1, 2023 to March 31, 2024). In particular, the discussion focused on Vietnam’s efforts to revive its economy after the significant impact of the Covid-19 pandemic, coinciding with the commemoration of 50 years of diplomatic relations between Vietnam and Japan.

In the activities of JICA Vietnam in the fiscal year 2023, a prominent result was the ODA loan agreement signed in July for three projects, with a total value of over 60 billion yen (VND10.672 trillion, or $400 million) in three areas: (1) Renovating urban public transportation infrastructure; (2) Strengthening agricultural supply chains; and (3) Post-Covid-19 economic and social recovery and development. This marks the most ODA loan agreements signed simultaneously since 2017.

Another distinctive and innovative aspect of JICA’s recent cooperation is the partnership with the professional Japanese football club Kawasaki Frontale, within the framework of activities that address social issues through sports. Through events such as “Physical Exercise Combined with Mathematics Learning” and the “Health Improvement Program”, held in November 2022 and June 2023, JICA’s efforts to expand the scope and diversify the forms of development cooperation are evident.

Looking forward, JICA’s key areas of cooperation in Vietnam include high-quality infrastructure development, with ongoing projects such as the Binh Duong Urban Public Transportation Infrastructure Renovation in southern Binh Duong province and the Infrastructure Improvement Project for Agricultural Development in the central highlands’ Lam Dong province. Progress in the Ho Chi Minh City Urban Railway (Metro Line No. 1) is also promising, with a 96 per cent completion rate and operations expected to commence in July 2024.

Additionally, JICA is actively involved in human resources development, facilitating skilled internships in Japan and conducting training programs for industrial workforce enhancement. In the health sector, JICA is aiding in establishing a remote training system to upgrade healthcare capabilities, especially focusing on addressing emerging health challenges like population aging. Lastly, JICA’s initiatives in climate change adaptation involve renewable energy projects and contributions to the Green Climate Fund, aligning with Vietnam’s target of achieving carbon neutrality by 2050.

“In 2023, which marks the 50th anniversary of the establishment of diplomatic relations between Vietnam and Japan, JICA will continue to strive to cooperate with Vietnam to further strengthen and develop the relationship between the two countries,” said Mr. Sugano Yuichi, Chief Representative of JICA Vietnam.

“According to the IMF’s forecast, Vietnam’s actual GDP growth rate is expected to increase by 4.7 per cent for the whole of 2023 and by 5.8 per cent for 2024,” he said in regard to the economic outlook this year and next year. “This growth rate is slower than the 8 per cent rate in 2022, which is mainly attributed to the impact of the global economic downturn due to the Russia - Ukraine conflict. However, we expect the economy to recover in the future due to the growth of domestic consumption, the increased flow of FDI investment, and the recovery of the tourism industry. Additionally, in July of this year, JICA signed a loan agreement with the Vietnamese Government to support post-Covid-19 economic and social recovery and development. We hope this support program will contribute to the recovery of the Vietnamese economy.”

“The purpose of ODA funds is to cooperate in the development of Vietnam’s economy and society,” he said in regard to enabling Vietnam to access and utilize Japanese ODA loans more effectively. “However, to facilitate the implementation of ODA projects, it is essential that the recipient country has clear, understandable regulations and fast procedures for ODA approval. We hope that the Vietnamese Government will improve the complex and overlapping approval procedures, reduce the number of documents required for project submission, and change the re-lending regulations. We believe that if these improvements are made, ODA funds will be used more effectively.”