VietNamNet Bridge – The signing ceremony of a $500 million loan agreement between Japan and Vietnam took place in Tokyo on November 10.

JICA’s chief representative in Vietnam, Tsuno Motonori.

Last week, Minister of Planning and Investment Vo Hong Phuc and Japanese Foreign Minister Okada Katsuya signed a diplomatic agreement for this loan, which includes JPY7 billion for poverty reduction and JPY47.9 billion for economic stimulation.

Speaking to the press in Hanoi, the Japan International Cooperation Agency’s (JICA) chief representative in Vietnam, Tsuno Motonori, explained that this loan will help the Vietnamese government overcome budget deficit difficulties while implementing its stimulus package.

The funds for Vietnam are the first drawn from Japan’s $300 billion Fund for Asia against Economic Crisis.

Deemed an urgent loan, Tsuno said that administrative procedures will be accelerated so that the loan can be disbursed by the end of 2009.

Previously, Japan had earmarked funds for five ODA projects in Vietnam worth JPY65 billion ($650 million). This marks Japan’s resumption of ODA grants to Vietnam since the PCI scandal in late 2008.

Japan will provide JPY120 billion for Vietnam in the first half of the 2009 fiscal year, the highest thus far for Vietnam.

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