Deputy Minister of Finance Trần Quốc Phương (right) and Chief Representative of JICA Việt Nam Office Kobayashi Yosuke sign the loan agreement separately on Monday. —Photo courtesy of the JICA Việt Nam Office

HÀ NỘI — The Japan International Cooperation Agency has signed a JPY50 billion (about US$315 million) loan agreement with the Government of Việt Nam to finance a green transformation programme aimed at advancing green growth and strengthening climate change adaptation.

The signing ceremony was attended by Deputy Minister of Finance Trần Quốc Phương and Kobayashi Yosuke, Chief Representative of the JICA Việt Nam Office.

The programme is designed to support the Vietnamese Government in promoting green growth and accelerating the green transition, while enhancing resilience to climate change through a combination of policy dialogue and financial assistance.

In doing so, it is expected to help stabilise the macroeconomy and foster Việt Nam’s sustainable development as climate-related impacts become increasingly severe.

More than 2,000 Japanese enterprises are currently operating in Việt Nam, making the country one of the most attractive destinations for business expansion within the ASEAN region.

Through cooperation between Japanese companies engaged in green transition, sustainable growth, climate change mitigation and disaster risk reduction, alongside the Vietnamese Government and relevant stakeholders, the programme is expected to make a tangible contribution to the sustainable development of both countries.

By combining financial support with policy dialogue, the project will promote the refinement of institutional frameworks related to financial and investment incentives for green transformation and green growth; the development of policies to implement Nationally Determined Contributions (NDCs); and the advancement of climate adaptation measures, thereby supporting the country’s broader climate response objectives in Việt Nam.

Building on key policy frameworks such as Việt Nam’s NDCs and the “National Green Growth Strategy for 2021-30, with a vision to 2050”, the Vietnamese Government and JICA will develop a policy matrix centred on the three pillars and implement financial assistance to drive improvements in climate-related policymaking.

Disbursement of the loan is expected to be completed by December 2026. — VNS