Vietnam urges Japan to enhance new-generation ODA with preferential rates, streamlined processes, and rapid implementation for transformative strategic infrastructure projects.

Prime Minister Pham Minh Chinh (R) and Japan's Finance Minister Kato Katsunobu. Photo: Nhat Bac/VGP

“The immediate focus should be on the North-South expressway, nuclear power, and urban railway projects in Hanoi and Ho Chi Minh City,” said Prime Minister Pham Minh Chinh during a meeting with Japan’s Finance Minister Kato Katsunobu on January 8.

At the meeting, Prime Minister Chinh welcomed the Japanese delegation on its visit to Vietnam and expressed his satisfaction with the increasingly robust and substantial bilateral relations. In 2023, the two nations elevated their ties to a Comprehensive Strategic Partnership for peace and prosperity in Asia and the world.

Japan remains an important economic partner for Vietnam, as its largest bilateral ODA donor and labor market, third-largest investor, and fourth-largest trade and tourism partner. The Vietnamese community in Japan, now numbering approximately 600,000, is the second largest foreign community in the country, reflecting the dynamic people-to-people and local-level exchanges.

Prime Minister Chinh expressed his gratitude for Japan’s financial assistance in major infrastructure projects, including the Nhat Tan Bridge, Terminal 2 of Noi Bai International Airport, and most recently, the Ho Chi Minh City Metro Line 1 (Ben Thanh–Suoi Tien), which commenced operations in December 2024. He highlighted the transformative impact of these projects and emphasized the need for Japan’s continued support through next-generation ODA with preferential rates, streamlined procedures, and rapid implementation.

Commenting on the restructuring of the Nghi Son Refinery in Thanh Hoa Province, Prime Minister Chinh noted the initial successes and urged Minister Kato to seek greater involvement of the Japan Bank for International Cooperation (JBIC) in the project. He called for a spirit of mutual benefit and risk-sharing to ensure that the refinery becomes a symbol of effective collaboration.

The Prime Minister underscored Vietnam’s substantial financing needs to achieve ambitious GDP growth targets, at least 8% by 2025 and double-digit growth in subsequent years, to meet the country’s development goals for 2030 and 2045. Alongside domestic efforts, he stressed the importance of international cooperation, particularly with Japan, in technology transfer, institutional development, workforce training, and governance capacity building.

He also thanked Japan for scholarships and vocational training programs benefiting Vietnamese citizens and called for expanded collaboration in education, infrastructure, climate change adaptation, and the Just Energy Transition Partnership (JETP). The Prime Minister announced plans to prepare a list of strategic projects for Japan’s consideration and highlighted the role of a dedicated task force in deepening bilateral cooperation.

Finance Minister Kato praised Vietnam’s rapid economic growth, reaching 7.09% in 2024, and its prospects for double-digit growth. He recognized Vietnam’s demographic advantage and significant development potential. Pledging to strengthen mutually beneficial cooperation, he expressed his commitment to advancing strategic projects and addressing existing challenges.

Minister Kato also added that Japan is currently reviewing its policies supporting foreign nationals, noting the contributions of the Vietnamese community, which accounts for a quarter of all foreign residents in Japan. He reiterated Japan’s intent to strengthen bilateral investment, trade, and technology cooperation, including in cutting-edge areas like digital transformation, ocean and space exploration, and underground infrastructure.

Prime Minister Chinh extended an invitation to Japanese Prime Minister Ishiba Shigeru to pay an official visit. Minister Kato conveyed Prime Minister Ishiba’s warm regards and welcomed the opportunity for future engagements to further elevate the Vietnam-Japan partnership.