Fukuda Chihiro, deputy chief representative of the Japan International Cooperation Agency (JICA) in Vietnam, shared the plan at a press conference on October 7.
The agency expects to direct the loans towards projects helping Vietnamese businesses with technology transfer, business connections and access to finance. JICA also sees the potential upgrading of Vietnam's stock market to secondary emerging-market status as a way to attract more quality capital into the economy.
Kobayashi Yosuke, chief representative of JICA Vietnam, said the agency's support strategy would focus on four pillars: developing science and technology talent, strengthening the private sector, improving the investment environment and developing strategic infrastructure.
Kobayashi Yosuke, chief representative of JICA Vietnam, speaks at a press conference on October 7 (Photo: JICA).
Yosuke said Vietnam's economic growth over many years had relied heavily on labour-intensive manufacturing, foreign direct investment (FDI) and deeper global integration. The government is now seeking new drivers of growth as it works towards its goal of making Vietnam a high-income country by 2045.
In the latest fiscal year, from October 2025 to September 2026, Japan committed JPY 89.3 billion (about USD 567 million) to three projects.
The projects cover climate-resilient infrastructure in northern Vietnam's mountainous and midland areas, disaster resilience in rural communities, and support for policies on green finance.
The green-finance policy project, worth JPY 50 billion (USD 318 million), is part of Japan's new-generation ODA programme. The concessional loan comes with simplified procedures and faster disbursement.
JICA representatives said the agency did not assess project effectiveness based simply on the amount of money disbursed. Instead, it looks at indicators such as the number of policies introduced and implemented and their impact. Measurable indicators can include the volume of green bonds issued and the share of renewable energy.
Japan was Vietnam's largest provider of bilateral ODA through the end of 2025. JICA data shows that Japan has provided more than JPY 3 trillion (nearly USD 19 billion) in concessional loans to Vietnam.
