Vietnam seeks Japan's new-generation ODA for large-scale projects

At a reception for visiting Japanese Minister of Finance Kato Katsunobu in Hanoi on January 8, Prime Minister Pham Minh Chinh called on Japan to provide new-generation official development assistance (ODA) for Vietnam to implement strategic infrastructure projects, including the North - South high-speed railway, nuclear power, and urban rail systems in Hanoi and Ho Chi Minh City.

In November last year, the 15th National Assembly (NA) passed a resolution on the investment policy for the North-South high-speed railway project. The 1,541-km project, running between Hanoi and Ho Chi Minh City, is estimated to cost VND1,700 trillion ($67 billion) with construction scheduled between 2027 and 2035.

In an effort to ensure energy security while meeting Net Zero goal, the NA also approved the plan to resume the nuclear power project in the south – central province of Ninh Thuan after eight years of pause.

By 2045, Hanoi is projected to have 15 urban railway lines with a total length of 617 km.

Ho Chi Minh City will complete an additional 155 km, bringing the total length of its urban rail systems to approximately 510 km.

The Prime Minister was quoted by the Government News as praising Japan's effective financial support for large-scale infrastructure projects in Vietnam including Hanoi-based Nhat Tan cable-stayed bridge and Terminal T2 at Noi Bai International Airport, and HCM City's Metro Line 1, which started commercial operations in December 2024.

As Vietnam targets to achieve a GDP growth rate of at least 8 per cent in 2025, the country needs substantial capital to accelerate and efficiently execute development projects, the Vietnamese leader told his guest.

He also called for Japan's assistance for Vietnam to implement projects on disaster risk mitigation, climate change response, and those under the Just Energy Transition Partnership (JETP) and the Asia Zero Emission Community (AZEC).

Minister Kato, for his part, congratulated Vietnam on achieving high growth rate of 7.09 per cent in 2024.

He said Japan is reviewing policies to better support foreign nationals in Japan, including Vietnamese community, which accounts for about one quarter of the foreign expatriates' population in Japan and has made significant contributions to his country's development.

The minister also suggested the two countries jointly resolve obstacles, expedite existing projects, and initiate new ones.