HCMC – Vietnam has proposed that the Japan International Cooperation Agency (JICA) provide next-generation official development assistance (ODA) loans with more favorable terms and greater procedural flexibility, focusing on high-tech sectors such as semiconductors, artificial intelligence (AI), digital transformation, and the green transition.
The two sides also agreed to develop a cooperation portfolio for the 2026-2030 period, with priority given to signing a loan agreement for the O Mon III Thermal Power Plant project in 2026.
The strategic cooperation agenda was discussed during a meeting in Hanoi on June 11 between Prime Minister Le Minh Hung and JICA President Tanaka Akihiko.
At the meeting, the Prime Minister called on JICA to work closely with the Ministry of Finance and relevant ministries, agencies, and localities to quickly formulate a list of projects for the next five-year period.
In addition to resolving bottlenecks affecting the O Mon III project, Vietnam urged JICA to accelerate implementation of the Vietnam-Japan University project and climate-resilient infrastructure projects in the Mekong Delta. The Government also proposed activating a trilateral working group involving the Ministry of Finance, the Japanese Embassy, and JICA to expedite the resolution of infrastructure-related issues in Hanoi and HCMC.
Vietnam’s effort to shape its ODA cooperation agenda for 2026-2030 reflects a shift in the country’s approach to development assistance. Rather than focusing primarily on traditional infrastructure, Vietnam is seeking to channel ODA financing into knowledge-intensive industries, including AI, semiconductors, digital technologies, and space technology.
For its part, JICA responded positively by proposing four new pillars of cooperation: human resource development, supply chains, institutions, and infrastructure. The agency also expressed support for a budget-support loan dedicated to AI development, which could help Vietnam address financing and technology gaps as it pursues higher economic growth in the medium term.
Regarding specific projects, JICA said it would support Vietnam’s efforts to launch the LOTUSat-1 satellite, accelerate development of Hanoi’s Metro Line 2 connecting Nam Thang Long and Tran Hung Dao, and prepare resources for senior management training programs serving the digital economy.
The meeting took place shortly after the official visit to Vietnam by Japanese Prime Minister Takaichi Sanae, as the two countries move to implement objectives under their Comprehensive Strategic Partnership.
Japan remains one of Vietnam’s leading economic partners and its largest provider of ODA. In 2025, Japanese ODA commitments to Vietnam increased by more than US$600 million, while two-way trade exceeded US$50 billion for the first time. The two sides also signed three loan agreements worth nearly JPY90 billion to support the development of key infrastructure projects.
