Speaking to the press this morning on the occasion of Japan releasing the ODA White Book (2007 data), Japanese Ambassador to Vietnam Sakaba Mitsuo said that Vietnam had begun paying off its ODA debts to Japan – to the tune of nearly $125 million in 2007.

Vietnam has been the largest recipient of Japanese ODA since 2006, but its debt is still smaller than those of China and Indonesia, said the Japanese diplomat.

Japan resumed granting ODA to Vietnam in 1992. In 2007, Vietnam paid nearly $125 million compared to the $640 million ODA grant for that year.

About Vietnam’s payment ability in the next 20-30 years, Ambassador Sakaba Mitsuo said he wasn’t worried, adding that when Vietnam’s economy developed, it could pay off that debt very quickly.

Sharing Japan’s experience in receiving foreign aid and paying debts over 20 years, he said the important thing is using the aid to effectively develop the economy.

Japan borrowed foreign capital to build big works like building the high-speed train system and highways. The Japanese ambassador said Vietnam should use ODA capital to build infrastructure like ports, bridges, and highways.

In 2007, Vietnam ranked 29^th of 30 countries receiving Japanese ODA, totalling over $18 million. Japan’s non-refundable aid mainly funded small projects in poor provinces.

Explaining this fact, the ambassador said that Japan’s policy was giving non-refundable aid to the Middle East and Africa, rather than Asia, where there were many economies developing. However, Vietnam now ranks third among countries receiving Japanese technical assistance, with $74 million.

Despite the global economic crisis, the Japanese ambassador confirmed the Japanese government’s viewpoint: increasing assistance to Asian countries to help them recover their economies.

Japanese Prime Minister Taro Aso recently stated at the Davos Summit that Japan was willing to supply ODA of not less than $17 billion, or a 20% increase, for Asian countries to boost infrastructure and trade projects in the next three years.

The Japanese diplomat said that Japanese officials would talk with Vietnamese counterparts about the implementation of projects to stimulate and recover the economy.

Tomorrow, April 11, the Japanese prime minister and the PMs of Vietnam, Laos and Cambodia will discuss the implementation of projects worth $20 million in the sub-Mekong region, at the Summit of Japan and sub-Mekong region (Vietnam, Laos, Cambodia), in Pattaya, Thailand.

XL