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Minister Dinh Tien Dung had a photo taken with the members of Japanese House of Councillors. Photo TL.

At the meeting, Minister Dinh Tien Dung said that Japan was currently a bilateral development partner providing ODA loans, and the largest preferential loans for Vietnam, providing important capital, mainly for projects for infrastructure development (transportation, energy ...).

"Vietnam is currently one of the three largest borrowing countries from Japan (together with India and Indonesia). Through this capital mobilization channel, the Vietnamese Government has mobilized large and long-term capital for development of infrastructure, transportation and medical projects,” the Minister affirmed.

According to Minister Dinh Tien Dung, in the period of 2018-2020, Vietnam will continue to make use of the remaining ODA capital of multilateral donors. Preferential loans from foreign donors will be further mobilized and used for infrastructure development.

Particularly for ODA loans, Vietnam will give a priority to using these loans for programs and projects in the fields of health, education, vocational education, climate change response, environmental protection and essential transportation infrastructure, without recoverability of direct capital, with high spill-over effect, and inter-region, and in consistency with planning and promoting the process of regional socio-economic development.

Particularly in the period of 2021-2025, Vietnam will prioritize the use of ODA and preferential loans as a leverage to promote and attract private investment, and the use of foreign loans for projects which are interesting to the private sector and able to perform with more efficiency and at lower costs.

“Japan's funding priorities are basically in line with Vietnam's development priorities (infrastructure development, climate change response and human resource development). Accordingly, Japanese loans are still an important development cooperation capital for Vietnam. Vietnam wishes to make use of this capital to serve Vietnam's socio-economic development in the field of public investment, ensuring mutual benefits and harmonization of interests, on the principle of lawful compliance of the two countries,” said Minister Dinh Tien Dung.

In response to the Minister of Finance, Shigeki Iwai said that the relationship between Japan and Vietnam is developing well and has both economic, political and cultural exchanges. The relationship path is on a good developmental way, and Vietnam is a very important partner for Japan in Southeast Asia. Therefore, Japan continues to cooperate with Vietnam in many fields, including ODA loans.

At the meeting, the two sides discussed a number of issues related to ODA loans, removing existing problems on tax and the Law on Public Investment that both sides are facing. In addition, the two sides also exchanged some contents related to the Vietnam Japan University Project; on the payment of the Ho Chi Minh City's No.1 urban railway project; VAT payment and personal income tax.

New Decree on controlling the expense of ODA capital and preferential loans

Minister Dinh Tien Dung affirmed that in order to solve these problems for the mutual development objectives and interests, Vietnam expected Japan and related agencies to study Vietnam’s suggestions, so as to give solutions as soon as possible in accordance with the law of the two countries.