Home / Economy / Banking & Finance
Vietnam seeks Japan’s US$500-million loan to address Covid-19 impacts
Ngoc Thuy 18:45, 2020/06/02
Japan has been a major donor of official development assistance (ODA) to Vietnam, estimated at US$24 billion, or 26.4% of total borrowings of the Vietnamese government.

Vietnam is looking for a loan in a range of US$300 – 500 million from the Japanese government to address impacts of Covid-19, according to Vietnamese Minister of Finance Dinh Tien Dung.

 Vietnamese Minister of Finance Dinh Tien Dung (R) and Japan's Ambassador to Vietnam Yamada Takio. Source: MoF. 

As the Japan International Cooperation Agency (JICA) is cooperating with the World Bank to finalize a policy framework for such a type of loan, Vietnam’s Ministry of Finance and other government agencies would study the feasibility of the policy, Dung said at a meeting with Japan’s newly-appointed Ambassador to Vietnam Yamada Takio on June 1.

According to Dung, Vietnam – Japan relations are at its peak since the establishment of diplomatic relation in September 1973.

“Japan has become a comprehensive strategic partner of Vietnam in all spheres, particularly in economic, trade and investment activities,” Dung said.

As of 2019, Japan remained Vietnam’s second largest investor with a combined commitments of US$59.3 billion. Over the past few years, Japan has also been at the top in terms of trade revenue among 200 countries and territories having trade relation with Vietnam.

Moreover, Japan has been a major donor of official development assistance (ODA) for Vietnam, estimated at US$24 billion, or 26.4% of total borrowings of the Vietnamese government.

Funds from Japan have been used for multiple purposes such as transportation, energy, healthcare and education, contributing significantly to Vietnam’s economic development and raising people’s living standard, Dung said.

Ambassador Takio said one of his key tasks is to enhance bilateral economic cooperation, and expressed hope to build close ties with the Ministry of Finance.

Takio spoke highly of Vietnam’s achievements in economic development, including fast economic growth, low inflation, declining fiscal deficit and lower public debt ratio.

Takio added as the world is seeing growing needs to diversify the global value chain and Vietnam has huge potential to take this opportunity for further growth.

The Japanese ambassador expected Vietnam to improve its credit rating and infrastructure system, the two major factors supporting the country’s development.

TAG: Vietnam Japan Ministry of Finance ODA MoF covid-19 coronavirus nCoV pandemic comprehensive strategic partnership
Other news
08:17, 2021/17/06
Vietnam, IFC together to promote female management in finance-banking
The government and the International Finance Corporation aims to increase the number of women in leadership positions in banks.
17:37, 2021/37/05
MoLISA wants to keep region-based minimum wage unchanged
A no-rise in minimum wage would create conditions for enterprises to recover and workers keeping their jobs, stated the labor ministry.
17:48, 2021/48/04
Vietnam tax revenue down 1.4% in two-month period
The fact that nearly 19,800 enterprises temporarily suspended operation in the first two months of 2021, up 60.5% year-on-year, has also contributed to a decline in tax revenue.
17:49, 2021/49/03
Stock market authorities to move stocks from HOSE to HNX to ease overload
The new change is set to take effect from March 3, 2021, under a SSC’s instruction once a technological solution could fully solve the current overload issue on HOSE.
15:29, 2021/29/03
Vietnam needs a legal framework to manage cryptocurrency
Vietnamese laws have not accepted cryptocurrency as a medium of exchange in the country.
15:23, 2021/23/02
Vietnam gov’t to mobilize US$15.4 billion via bond auctions in 2021
As of January 20, the total value of government bonds reached more than VND16 trillion (US$694.7 million).