The loan, signed by Vo Hong Phuc, Minister of Planning and Investment and the Japanese Ambassador Yasuaki Tanizaki, aims to continue Japan’s assistance to the country by aiding in infrastructure development, particularly construction of two routes of the North-South Highway.

Speaking at a ceremony in Hanoi on June 14, Phuc expressed his appreciation that Japan had pledged not to alter its assistance to Vietnam despite the important task of dealing with the consequences of the recent disasters.

He added that Japan’s consistent support for Vietnam showed the good friendship between the two countries and expressed his hope that “the relationship would become more and more stable”.

Ambassador Tanizaki also extended Japan’s thanks to the Vietnamese Government and people for their expressions of sympathy and support for Japan after the recent natural calamities.

Tanizaki said the interest rate for the loan would remain at a low 1.2 percent for the full 30-year period.

With the addition of the newly signed loan, Japan’s ODA to Vietnam, including non-refundable aid and preferential loans, now comes to just more than US$21 billion.