Deputy Minister of Finance Tran Quoc Phuong has met with a senior Japanese official to discuss future directions for Japan’s official development assistance to Vietnam.
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The meeting took place on May 25, with the deputy minister welcoming Hayakawa Yuho, senior vice president of the Japan International Cooperation Agency (JICA), and his delegation during their working visit to the Ministry of Finance (MoF).
The deputy minister noted that cooperation between Vietnam and Japan has developed remarkably in recent years, particularly following high-level visits by leaders of both countries. Japan continues to be one of Vietnam’s leading economic partners, ranking first in official development assistance (ODA) provision and labour cooperation, third in investment, and fourth in trade and tourism.
During the 2025 fiscal year, Vietnam and Japan successfully signed three loan agreements worth nearly ¥90 billion ($570 million). The MoF expressed appreciation and thanked JICA for its close coordination in achieving these agreements.
On a visit to Vietnam by the Japanese Prime Minister Takaichi Sanae in early May, leaders of both countries agreed to deepen bilateral relations, elevating cooperation to a new level based on mutual interests and shared development goals.
Deputy Minister Phuong proposed that Hayakawa Yuho and JICA continue working closely with Vietnam’s MoF and relevant agencies to further advance ODA cooperation between the two countries. The MoF reaffirmed its commitment to supporting and closely coordinating the effective implementation of future cooperation projects and initiatives.
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JICA senior vice president Hayakawa Yuho said he valued the discussion on future Japanese-funded projects, including strategic orientations and cooperation ideas built around four key pillars.
The first pillar focuses on developing high-quality workers in line with Resolutions 57-NQ/TW and 71-NQ/TW. Current initiatives include semiconductor engineering training activities at the Vietnam Japan University and high-tech courses at the University of Science and Technology of Hanoi. JICA is also preparing policy loans to support digital transformation and AI reforms, as well as projects aimed at strengthening satellite data analysis capabilities.
New ideas under consideration include using Japanese ODA loans to support study-abroad schemes in Japan focused on AI and semiconductors, or establishing advanced scientific research facilities in Vietnam.
The second pillar centres on developing supporting industries and strengthening supply chains. Vietnam and Japan are currently negotiating the O Mon 3 combined-cycle thermal power plant and support mechanisms for the Bac Ai pumped-storage hydropower plant, a technology that supports renewable energy development.
Japan could also support improvements to Vietnam’s power transmission systems and electricity grids to meet rising renewable energy demand through STEP Loans provided via commercial banks.
The third pillar focuses on institutional and policy development. JICA is currently implementing management training courses and scholarship schemes for young civil servants. Future ideas include using ODA to strengthen the capacity of local government officials, particularly following administrative restructuring, through a combination of study programmes in Japan and in-country training.
In addition, JICA expressed interest in supporting the development of a comprehensive startup ecosystem in Vietnam.
The fourth pillar concerns infrastructure development. Alongside ongoing projects, JICA is considering initiatives such as extending Metro Line No.1 in Ho Chi Minh City, supporting disaster resilience efforts in Central Vietnam, developing an urban railway system in Danang, and expanding Lach Huyen Port and surrounding airport infrastructure.
Deputy Minister Phuong thanked Hayakawa Yuho for sharing a range of valuable proposals and strategic cooperation ideas. He noted that all four pillars align closely with Vietnam’s socioeconomic development priorities and highly appreciated JICA’s research and planning efforts linked to key resolutions of the Communist Party of Vietnam.
Phuong proposed that JICA and the MoF formalise these four cooperation pillars as part of Vietnam’s strategic ODA mobilisation framework for the next five years. He also stressed the importance of close coordination among JICA, the MoF and relevant ministries and agencies to identify specific project portfolios for Vietnam’s 2026-2030 public investment plan.
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