JAPAN'S ODA TO VIETNAM

1. Priority areas of Japan’s ODA for Vietnam (Country Assistance Program for Vietnam, dated 04 April 2004) a. Growth Acceleration To speed up the economic growth, the role of “motive for growth” (private sector and foreign direct investment - FDI), proper “systems and policies” and the backgrounds for economic activities such as infrastructure and human resource are very essential. Therefore, the Japanese Government pays special attention to improve the investment environment, develop medium and small scale enterprises and private sector, train human resources for economic development and reform all economic sectors including state owned enterprises. b. Improvement of social and living environments It is not right that economic growth can completely solve out all matters related to social and living environments. In some cases, it even makes these worse. According to social and humanity views, the improvement of social and living environments is very important. Moreover, it will create basic conditions for economic development in future. Being aware of this, Japanese Government attaches special importance to support hunger elimination and poverty alleviation, education, healthcare, provincial development and cities and environment development. c. Regime establishment Establishing a regime as a background for social and economic development plays a vital role in the process of developing the economy and improving the living and social environments. Japanese Government is assisting to complete the legal system, restructure the bureaucratic apparatus and reform the financial system of Vietnam. 2. Japan ODA achievements in Vietnam - Japan resumed its ODA for Vietnam in 1992. - Japan’s ODA for Vietnam from 1991 to 2007 is JPY 1,416.7 billion, of which the loan is JPY 1,249.9 billion, grant aid is JPY 90.6 billion and technical cooperation is JPY 76.2billion. - Japan ODA for Vietnam makes up 20 % of the total ODA for Vietnam pledged in 2007. (the total ODA for Vietnam in USD is 5.4 billion, of this Japan ODA is USD 1.1 billion). Fiscal year 1993 1994 1995 1996 1997 1998 1999 Total 598.90 660.47 821.48 923.87 965.19 1,008.22 1,119.9 Loan 523.04 580.00 700.00 810.00 850.00 880.00 1012.81 Grant aid 62.70 56.72 89.08 80.35 72.97 81.86 46.41 Technical Cooperation 13.16 23.75 32.40 33.52 42.22 46.36 60.70 2000 2001 2002 2003 2004 2005 2006 2007 864.03 905.94 912.75 905.57 926.25 1009.19 1,035 1,051.18 709.04 743.14 793.30 793.30 820.00 908.20 950.78 979.00 80.67 83.71 52.37 56.50 49.14 44.65 30.97 20.20 74.32 79.09 67.08 55.77 57.11 56.61 52.75 51.98 Note: - The amounts of loan and grant aid in each fiscal year have been calculated based on the signing date of Exchange Notes. - The amount of technical cooperation in each fiscal year is the actual expenses executed by JICA. - The loan amount of 1999 includes JPY 20 billion of the MIYAZAWA Initiative of “Loan for economic reform”. 3. Major economic cooperation projects Loan capital Bai Chay Bridge, Can Tho Bridge, Tan Son Nhat International Airport, HCMC Subway, Saigon East-West Highway, Hai Van Tunnel, Small Scale Pro-poor Infrastructure Dev., Pha Lai Thermal Power, Phu My Thermal Power, Hanoi Drainage Project, HCMC Water Environment, Cai Lan Port Expansion, Highway No. 5 improvement, Rural Telecommunication Network, O Mon Thermal Power Plant, High Education Assistance, Rural Health Development, Poverty Reduction Support Credit Grant Aid VN-JPN Human Resources Center, Human Resources Development scholarship (Hanoi), Bridges in Central Area, Bridges in Cuu Long Delta, Transportation Tech. School, Primary School in Flood Areas, Primary School in Northern Area, Agricultural University of Can Tho, Fishing Port Facilities at Vung Tau, Tan Chi Drainage System, Rural improvement in Nam Dan District, Nghe An Province, Cho Ray Hospital, Bach Mai Hospital, Hai Ba Trung Hospital, Improvement of National Hospital of Pediatrics, Reforestation Equipment in Central Highland, Da Nang Hospital, Measles Vaccine, Gia Lam Water Supply Facilities, Hai Duong Water Supply, Groundwater Dev. in Northern Area, Reforestation Equip (North), Reforestation Equipment in Central Highland, Forestation in Coastal Area Development Research HN-HCM Railway Bridge Rehabilitation, National Road Network Improvement, Hanoi Urban Infrastructure, Waste Management in Hanoi City, SMEs Finance Project, Primary School Development Research, Market Economy Implementation, Rural Economic Development Research, HCMC Overall Road Network Plan, Hanoi Infrastructure Plan Power Sector Loan. Technical Cooperation Reforestation in the North, Artificial Insemination Tech., Legal system cooperation, Nghe An Reproductive Health, Higher Maritime Education, etc. Up to 2006, Japan has hosted 13,702 trainees from Vietnam and sent 2,523 experts and 200 Japan Overseas Cooperation Volunteers (JOCV), 15 Senior Overseas Volunteers to Vietnam. Grant Assistance for Grass-roots Human Security From 1992 to 2007, 315 projects have been implemented in local areas by Grant Assistance for Grass-roots Human Security. In 2007, 16 projects were executed such as primary school building, rural road improvement, bridge building and medical equipment improvement.