Truong Chi Trung, Deputy Finance Minister(right), Mutsuya Mori, Chief Representative of Viet Nam(left)
On December 24, the Japan International Cooperation Agency (JICA) finalized the Japanese ODA Loan agreements totaling around 46.653 billion yen (two loan agreements overall) utilizing the Government associated with the Socialist Republic of Vietnam.
Vietnam has-been carrying out financial development increasingly considering that the 1990’s (research ), achieving the national goal of becoming a lower middle-income group nation by 2010 and also decreasing impoverishment (poverty rate paid down from 37.4percent in 1998 to 14.2% in 2010(Origin: General Statistics workplace “Vietnam Living Standards Survey”). As tariffs will likely be eliminated on the list of ASEAN user countries in 2015, it is important to boost the financial investment environment through improved infrastructure, support macro economic climate by reforming the economic climate, financial framework and administrative system and thereby reinforce the intercontinental competition to be able to sustain economic development. Conversely, additionally it is essential to over come vulnerability if you take steps such enhancement of income levels of the outlying places that are poorer than urban areas and account fully for around 70per cent of the total population, improvement of pubic hygiene that sometimes deteriorate because of urbanization and adoption of minimization and adaptation steps on weather change to Vietnam that will be recognized as probably the most susceptible countries worldwide.
From this backdrop, these Japanese ODA Loans try to facilitate improvement financial infrastructures that are indispensable for strengthening Vietnam’s competitiveness particularly to boost the investment environment. The main characteristics are as follows.
(1) Hanoi City Ring path # 3 building task (Mai Dich - Southern Thang Long section) should build an urban highway in part lacking high-standard highway in Hanoi City Ring path #3 which was sustained by Japanese ODA Loan constantly. In Hanoi City, the rise of traffic volume is causing severe and persistent traffic congestion, which will be adversely affecting the effectiveness of social and economic tasks. The project is anticipated to mitigate the traffic obstruction into the city and facilitate the logistics utilizing the neighboring industrial buildings and places such as Hai Phong City.
(2) Terminal 2 building Project in Noi Bai airport terminal (III) will be construct the next terminal building for international passengers in Noi Bai airport terminal, which is the portal of this money of Vietnam. Since the airport is already overcrowded with more than expected traveler volume, the task is supposed to enhance the capability to meet with the quickly growing aviation demand and improve convenience and safety. Using use regarding the system to supply aviation fuel from buried pipelines rather than container cars, which is the initial situation in Vietnam, JICA will give you technical collaboration in order to improve upkeep capability and facilitate the procedure under the encouraging system through the public-private partnership.
JICA will continue to supply agile assistance for Vietnam's development problems, while seeking built-in utilization of a wide range of ODA systems, such Japanese ODA financial loans, technical collaboration and grant aid.
(guide ) Growth performance of Vietnam
(Resource): ready based on the IMF World Economic Outlook Database
(Reference ) quantities and problems of financial loans
|Venture subject||Amount (million yen)||Annual interest (percent)||Repayment (years)||Grace period (years)||Procurement|
|(1) Hanoi City Ring path # 3 building task (Mai Dich - Southern Thang lengthy part)||20, 591||1.4||0.01||30||10||General untied|
|(2) Terminal 2 building Project in Noi Bai International Airport (III)||26, 062||0.1||40||Japan tied|
(1) The conditions of ACTION (Unique Terms for Economic Partnership) is applied to (2).
(2) The Government of Vietnam implements post-audit regarding the procurement procedures by a third-party human anatomy, etc. for jobs specified because of the discussions involving the national of Vietnam and Japan, to make certain equity and competition in procurement process. However, charges for this audit are not contained in the Japanese ODA financial loans.
(1) Hanoi City Ring Road # 3 Construction Project (Mai Dich – Southern Thang Extended Section)
- history and need -
Vietnamese domestic transportation is extremely influenced by roads. Currently, the traffic volume is rapidly increasing, mainly among trunk roadways in towns and those linking to metropolitan and local towns. While the scenario is particularly severe in Hanoi City experiencing rapid and constant economic development, populace development and motorization, its necessary to arrange the ring road network to be able to get a grip on the inflow traffic from neighboring places to Hanoi City also to facilitate the traffic between neighboring places.
Hanoi City Ring path # 3 operates all over main part of Hanoi City and functions as an urban and interurban road at exactly the same time. It is the trunk road constituting the community connecting the northern area of Hanoi City which contains Noi Bai airport terminal and many industrial complexes with nationwide Highway No. 5 leading to Hanoi’s main area and Hai Phong City. Of Hanoi City Ring path # 3, its urgently necessary to improve the area from Mai Dich Crossing to Thang Long Bridge that leads to Noi Bai airport terminal, as the traffic volume (53, 983 traveler automobiles equivalent a day) exceeds the ability (44, 000 traveler automobiles equivalent per day) by 2012.