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Japan will provide Viet Nam with a JPY25 billion (US$244 million) loan in 2013 to help the country respond to climate change issues, in a bid to attract foreign investors.
On behalf of the two governments, Minister of Planning and Investment Bui Quang Vinh and Japanese ambassador to Viet Nam Hiroshi Fukada signed an exchange of notes regarding the loan.
Accordingly, JPY10 billion ($97.7 million) is to be spent for the fourth phase of Viet Nam's Support Program to Respond to Climate Change – a multi-donor partnership which includes Japan, France, Canada and the World Bank, to support in developing policy and institutional actions to create an effective response to climate change.
The remainder of the funding, JPY15 billion ($146.5 million), would be used for the second Economic Management and Competitive Credit program for Viet Nam (EMCC 2).
Minister Vinh said that the loans were very helpful to Viet Nam, since the country was most vulnerable to climate change and was reforming its economy to improve its competitiveness.
"Viet Nam commits to use the ODA in a transparent and effective way," he said.
Ambassador Fukada said that he hoped the ODA will be brought into play effectively with ensured transparency.
He said, due to such assistance, he expected the relationship between the two countries to become even closer.
Japan has been Viet Nam's largest source of bilateral assistance over the past 20 years.
Japan has supported socio-economic development in Viet Nam through infrastructure building, human resource training, as well as policy reforms.
I’m Nick Veinot. We will be back with more news from English 123.