Japan pledges ¥50 billion ODA loan to support Viet Nam’s green growth

The Japan International Cooperation Agency (JICA) in Viet Nam, in coordination with the Vietnamese Ministry of Finance, co-hosted a seminar on "New Generation ODA – Development Policy Loan for Green Transformation toward Green Growth and Climate Resilience" on March 18 in Ha Noi.

The event also drew the attendance of Deputy Minister of Finance Tran Quoc Phuong, Japanese Ambassador to Viet Nam Ito Naoki, JICA Chief Representative in Viet Nam Kobayashi Yosuke, along with leaders from ministries, organizations, and enterprises of both countries.

Japanese Ambassador Ito Naoki emphasized that this initiative marks not an endpoint, but the beginning of new efforts and proactive initiatives toward green growth and Net Zero in Viet Nam, as well as within the Asian Zero Emission Community (AZEC).

Japanese Ambassador to Viet Nam Ito Naoki (1st from L) and JICA Chief Representative in Viet Nam Kobayashi Yosuke (center), Ha Noi, March 18, 2026 - Photo: JICA

Three major pillars of the Japanese-funded ODA loan

The first pillar focuses on supporting Viet Nam in developing financial and investment policies to encourage economic sectors to invest in green and climate-responsive projects. This includes preferential policies on taxes, administrative procedures, and investment, as well as measures to enhance enterprises' access to green financing sources such as green bonds and green credit.

The second pillar aims to support the development of policies to implement nationally determined contributions (NDCs). It aligns with global trends in green transition and greenhouse gas emission reduction toward Net Zero, while ensuring Viet Nam's autonomy in fulfilling its international commitments.

The third pillar supports Viet Nam's efforts to respond to climate change. This initiative was proposed following significant damage caused by major storms such as Matmo, Bualoi, and Yagi. It focuses on strengthening Viet Nam's capacity to cope with natural disasters and future climate risks—an increasingly urgent priority.

Ambassador Ito Naoki said that Japan, through the cooperation of various agencies, including JICA Viet Nam, will continue to support Viet Nam on its path toward green growth.

"In particular, the program loan, with its policy framework on green growth, green transition, and climate change adaptation, is expected to accelerate green transition efforts through both policy support and financial resource provision," he stated.

Deputy Minister of Finance Tran Quoc Phuong

For his part, Deputy Minister of Finance Tran Quoc Phuong noted that the Prime Minister of Viet Nam has issued the National Strategy on Green Growth for the 2021–2030 period, with a vision to 2050. Accordingly, the demand for financial resources for green growth in the coming years is substantial.

Experts estimate that the financial demand for emission reduction measures across sectors to meet Viet Nam's environmental commitments by 2030 will reach approximately US$68.75 billion. Of this, domestic resources are expected to cover more than US$24.7 billion (36 percent), while international support is estimated at around US$44 billion (64 percent).

"To mobilize these resources, Viet Nam hopes that foreign partners, including Japan, will continue to accompany, cooperate with, and support the country in terms of finance, technology, and human resources in this field," Deputy Minister Tran Quoc Phuong emphasised./. 

Kim Anh

Source: VGP