VietNamNet Bridge –Viet Nam and Japan finalised an official direct assistance (ODA) loan worth nearly JPY41 billion (approximately US$508 million) at a ceremony yesterday, June 14, in Ha Noi.

Vo Hong Phuc, Minister of Planning and Investment and Yasuaki Tanizaki, the Japanese Ambassador, signed the loan which was given during the first term of Japan's 2011 financial year.

The loan aims to continue Japan's assistance to the country by aiding in infrastructure development, particularly construction of two routes of the North-South Highway.

The first route will run from Ho Chi Minh City to Dau Giay Industrial Park in Thong Nhat District in the southeast province of Dong Nai, while the second will create a connection between the central provinces of Da Nang and Quang Ngai.

At the ceremony, Phuc expressed his appreciation that Japan had pledged not to alter its assistance to Viet Nam despite the important task of dealing with the consequences of the recent disasters.

"I visited Japan last week and witnessed with my own eyes the difficulties facing the Japanese people after the recent disasters," Phuc said.

He added that Japan's consistent support for Viet Nam 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.

Japan continued its assistance to Viet Nam as planned despite the current difficulties because it considered Viet Nam as "an important partner", he said.

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

In response to journalists' questions regarding Japan's expectations for construction of Viet Nam's infrastructure, Tanizaki said he hoped Viet Nam would speed up the land clearance process as that task had taken the country a lot of time.

Since it resumed ODA to Viet Nam in 1992 Japan has consistently been the leading sponsor to the Vietnamese Government.

With the addition of the newly signed loan, Japan's ODA to Viet Nam, including non-refundable aid and preferential loans, now comes to just more than JPY1.685 trillion (approximately $21 billion).

VietNamNet/Viet Nam News