What has JICA contributed to Vietnam’s socio-economic development over the past few years?

Japan started project cooperation through ODA loans, technical assistance and grant aid in Vietnam since 1993. Japan’s ODA has strongly focused on infrastructure development, contributing to economic growth of Vietnam through attracting foreign and domestic direct investment.

Many completed projects have been put into use and showing positive impacts on the Vietnamese socio-economy, such as the transport network in northern part of Vietnam including National Highway No. 5 (Hanoi- Hai Phong), No. 10 (Hai Phong- Quang Ninh), No. 18 (Hanoi- Quang Ninh), Bai Chay and Binh bridges, Hai Phong and Cai Lan seaports; the Hai Van Tunnel in the central region of Vietnam... Tan Son Nhat International Airport in Ho Chi Minh City that currently manages over 75% of the country’s total international passengers plays an important role as Vietnam’s gateway airport and the demand for increasing air travel in the future.

Over the past 15 years, infrastructure construction has been well developed in Vietnam, greatly improving investment environment and attracting huge domestic and foreign direct investment, promoting economic growth, thereby, contributing to poverty reduction in the country.

On the other hand, Japan’s technical cooperation has especially focused on human resource development and emphasizes joint-work with the counterpart, aiming to support Vietnam in pursuing its own sustainable development. Up until now, nearly 15,000 Vietnamese engineers, technicians and administrative officials have participated into JICA’s training courses, and approximately 2,500 senior experts and over 200 enthusiastic volunteers have been sent from Japan to Vietnam to transfer technical know- how to Vietnamese organizations and counterpart personnel from central to grass-root level.

Representing examples for this cooperation are JICA’s support in legal and judicial field including drafting and enactment of Civil Code, Civil Procedure Code, Civil Execution Code, State Compensation Law and complication of the first- ever Criminal Prosecutor’s Manual on investigation and first- instance trials; and JICA’s cooperation to reform and modernize tax and customs administration.

In the field of science and technology, we contribute to enhance capacity for Vietnam Academy of Science and Technology in water environment protection, National Institute of Hygiene and Epidemiology to control emerging and re- emerging infectious diseases, HCM University of Technology to strengthen university- community linkage to develop agriculture and rural area as well as industry in southern provinces.

In healthcare sector, assistance of Japan’s ODA for three top referral hospitals in Vietnam, namely Cho Ray, Bach Mai and Hue Central Hospital, through grant aid for improvement of facilities and equipment and technical cooperation for human resources development, has greatly contributed to the development of those hospitals and to the development of lower level hospitals in each region.

Vietnam is considered as a partner who uses Japan’s ODA effectively. What can you talk about the efficiency of ODA using in Vietnam in 2008?

JICA has been working in around 150 countries all over the world and Vietnam is one of the biggest Japan’s ODA recipients. Up until now, Vietnam has been considered the most successful ODA partner for us.

At the beginning of our cooperation, we encountered many difficulties in land acquisition and clearance, resettlement and time consuming of tender especially for large scale projects as our counterparts were not familiar to aid procedures. Over 15 years, thanks to the joint efforts made by JICA and Vietnamese relevant ministries and agencies as well as other donors such as WB, ADB and bilateral organizations, procedures have been gradually improved. We hope that these problems will be solved soon to speed up project progress. I think, we must prepare more carefully from the planning stage to ensure a smooth start of projects.

Have Can Tho bridge collapse and PCI scandal made any obstacles to ODA provision from Japan to Vietnam in the up-coming time?

Can Tho bridge collapse is terrible and serious accident, over 50 people were killed then. Through the investigation commission, we investigated the cause and carefully studied construction safety measures. Based on this study, construction work has been resumed. We hope the construction of the bridge will be implemented and contribute to the development of Can Tho city and the region, benefiting its people as soon as possible.

JICA will take this case as an important safety lesson for our on-going and future projects and we should never let it happen again. We will cooperate with Ministry of Construction and Ministry of Transport of Vietnam to improve quality and strengthen safety measures in public work constructions through technical assistance.

PCI case has harmed the Japanese and Vietnamese people’s trust in ODA activities. It is deep regret. Both Vietnam and Japan are making joint efforts to develop concrete measures for improving the transparency of procedure and strengthen capacity of procurement contract management. We hope through the joint efforts, our new ODA loans can be resumed.

How does the establishment of a new JICA affect the ODA for Vietnam?

From the very beginning of ODA activities, we have made efforts for a good combination between technical cooperation and financial assistance. For example, we provided financial assistance for infrastructure constructions based on JICA’s master plans and feasibility studies. Also, we provided technical cooperation for institutional development in executing agencies of these constructions.

New JICA as one organization from October 2008 will make our cooperation more flexible and comprehensive by providing three schemes of Japanese ODA including technical cooperation, Yen loan, and grant aid all under one roof. We will work on the principle of the three Ss- speed up, scale up and spread out: speeding up projects by closer coordination of technical assistance, loans, and grant aid; scaling up and spreading out successful technical cooperation and grant aid projects to larger programs through ODA loans.

Could you talk something about detailed plans of new JICA in 2009?

The world is under a financial crisis now and so is Vietnam. This crisis will affect the Vietnam’s economy, slow down its growth rate and FDI into the country may decrease in 2009. We will closely follow the situation and would like to collaborate with Vietnamese government to prepare properly for this circumstance.

Global warming and climate change have become a challenge for the world’s development and Vietnam will be one of the most vulnerable countries. The adaptation and mitigation for climate change has been given high priority in Japan’s ODA. JICA will prepare comprehensive programs on this issue through both technical and financial assistance.

For example, we are conducting a program to mitigate disaster damages in the central provinces of Vietnam with adequate consideration to influences caused by global climate change for the purpose of sustainable socio- economic development and poverty alleviation in the areas. The Project for Building Disaster Resilient Societies in Central Region under the program will start in early 2009.

 Another relevant program is on the natural environment conservation for Vietnam aiming at implementation of sustainable forest management and natural environment management. JICA will also provide shall provide grant aid assistance for Afforestation in the Coastal Area of Southern Central Vietnam; and is considering providing the Forest Sector Loan and technical cooperation for Screening of Forestry-land Suitable for AR-CDM and REDD (Reducing Emission from Deforestation and Forest Degradation).

In December 2008, Japan and Vietnam signed the Japan- Vietnam Economic Partnership Agreement which will strengthen the mutually beneficial economic collaboration between the two countries by facilitating freer flows of goods, services, and investments. In addition, Phase III of Japan- Vietnam Joint- Initiative to improve business environment with a view to strengthening Vietnam’s competitiveness has been conducted, contributing to soaring Japan’s investment in Vietnam.

JICA is considering providing continuous support for further improving economic institutions such as customs administration as well as developing competent human resources conducive to active supporting industries and SMEs development.

Referring to infrastructure projects in 2009, we will accelerate the implementation of on-going projects such as Thanh Tri bridge and Ring Road No. 3, Nhat Tan bridge, metro lines in Hanoi and Ho Chi Minh City, power plants of Dai Ninh, O Mon, and Nghi Son, and environment improvement in Hanoi, Hai Phong, Hue, and Ho Chi Minh City.

As for new projects, under JICA’s Comprehensive Study on the Sustainable Development of Transport System in Vietnam and related feasibility studies, we will assist project formulation of the North- South High- Speed Railway, North- South Express Way, and Hoa Lac High- Tech Park which were agreed between the two governments.