Participants at the seminar on Wednesday in Hà Nội. — VNS Photo Nguyễn Hằng

HÀ NỘI — A JPY50 billion (about US$315 million) loan package extended to Việt Nam underscores the Japanese government’s strong commitment to supporting the Southeast Asian country's efforts to achieve its Nationally Determined Contribution targets, advancing green growth and strengthening disaster resilience amid intensifying climate change.

Japanese Ambassador Ito Naoki made the remarks on Wednesday morning in Hà Nội while attending a high-level seminar on new-generation official development assistance (ODA), focusing on a programme loan for a green transition aligned with Việt Nam’s goals of green growth and climate adaptation.

The seminar was co-organised by the Japan International Cooperation Agency (JICA) in Việt Nam and the Ministry of Finance.

Now approved by the governments of Việt Nam and Japan, the exchange of notes on the loan is expected to be signed later this month.

Above all, the green transition initiative represents a cooperative framework embodying the potential of “ODA in a new era,” Naoki said.

The ambassador also said that under the strong leadership of Party General Secretary Tô Lâm, Việt Nam is currently advancing reforms across multiple sectors towards a new era.

He added that the Japanese government and businesses fully support Việt Nam’s direction in accelerating digital transformation, building a data-driven society and modernising the country through innovation.

The programme loan goes beyond traditional financial assistance and is emerging as a pioneering global initiative.

It proposes projects that apply advanced Japanese technologies, including artificial intelligence (AI) and satellite observation data, to meet Việt Nam’s needs in green growth and disaster prevention.

The initiative could serve as a key driver of innovation, one of the new pillars of cooperation between Việt Nam and Japan.

“I hope today’s event will mark an important starting point, contributing to a robust transition towards a comprehensive green society in Việt Nam,” the ambassador added.

Deputy Minister of Finance Trần Quốc Phương delivers his speech at the seminar on Wednesday in Hà Nội. — VNS Photo Nguyễn Hằng

Key outcomes

Speaking at the seminar, Deputy Minister of Finance Trần Quốc Phương said that during Japanese Prime Minister Ishiba Shigeru’s visit to Việt Nam in April 2025, the two Prime Ministers reaffirmed their commitment to close coordination and further strengthening the Việt Nam-Japan Strategic Partnership in the new era.

This includes revitalising Japanese ODA flows to Việt Nam and exploring cooperation in areas of mutual interest such as the green transition, digital transformation and innovation.

In line with shared understanding between the two countries’ senior leaders, in 2025, the finance ministry coordinated with the Japanese Embassy in Việt Nam and JICA to develop the JPY50 billion budget support programme for a green transition and climate change adaptation.

The programme’s primary objective is to support the implementation of strategies and policies aimed at green growth and climate resilience in Việt Nam.

This marks a significant step in translating high-level commitments into action, promoting next-generation ODA characterised by more concessional terms, simplified procedures and greater flexibility.

It will also help finance one of the four priority areas of the Vietnamese Government, including a green transition and climate change response, thus contributing to the continued development of bilateral relations.

Fast disbursement, rising demand

JICA's Chief Representative in Việt Nam Kobayashi Yosuke said that the next-generation ODA loan is expected to be disbursed this year.

From the official request to the initial agreement between the two governments, the process took just eight months, demonstrating a rapid response to practical needs.

Disbursement is also significantly faster, as it is not tied to construction timelines.

Kobayashi highlighted that the programme’s key strength lies in its comprehensive and strategic approach, including facilitating connections between Japanese companies possessing advanced science, technology and innovation capabilities and the Vietnamese Government and relevant organisations.

In other words, the next-generation ODA will open up a JPY50-billion 'market', combining Việt Nam’s financial incentives and investment with Japan’s scientific and technological resources.

The Vietnamese Government and relevant agencies can use the loan and the additional capital it mobilises to develop and implement concrete business projects with Japanese firms, thus enhancing policy effectiveness.

Moreover, the process will involve technology transfer from Japanese to Vietnamese companies and is expected to contribute to the development of both private and State-owned enterprises, a key focus of Việt Nam’s reform agenda.

Phương noted that Việt Nam’s demand for financial resources to achieve green growth targets in the near future is substantial.

According to expert estimates, approximately $68.75 billion in financing is required for emissions reduction measures across sectors in line with Việt Nam’s environmental commitments by 2030.

Of this total, domestic resources are expected to account for over $24.7 billion (36 per cent), while international support is projected at around $44 billion (64 per cent).

To secure these resources, the deputy minister expressed hope that international partners, including Japan, will continue to accompany and support Việt Nam not only financially but also through technology and personnel. — VNS