Japan helps Vietnam cope with climate change

(Bqp.vn) - Japan will provide Vietnam with a JPY25 billion (US$244 million) loan in 2014 to help the country respond to climate change issues.

An exchange of notes on the loan was signed between Minister of Planning and Investment Bui Quang Vinh and Japanese ambassador to Vietnam Hiroshi Fukada on March 5.

Accordingly, JPY10 billion (US$97.7 million) will be allocated to the fourth phase of Vietnam's Support Programme to Respond to Climate Change - a multi-donor partnership which includes Japan, the World Bank (WB), France and Canada, to support in developing policy and institutional actions to create an effective response to climate change.

The remainder of the funding, JPY15 billion (US$146.5 million), will be spent for the second Economic Management and Competitive Credit programme for Vietnam (EMCC 2).

Minister Vinh said that the loans are very helpful to Vietnam, since the country was most vulnerable to climate change and are reforming its economy and improving its competitiveness. “Vietnam commits to use the ODA in a transparent and effective manner”, he said.

Ambassador Fukada said that he hoped the ODA would bring into play its effectiveness to ensure the transparency of the funding.

Japan has been Vietnam’s largest source of bilateral assistance over the past 20 years and it has supported the Southeast Asian country’s socio-economic development through infrastructure development, human resource training and policy reforms.

On March 6, representatives from the Vietnam Ministry of Finance and the Japan International Cooperation Agency (JICA) are scheduled to ink two specific agreements regarding the two programmes.

(Source: VOV)