Hanoi (VNA) – The Ministry of Finance signed 11 on-lending agreements worth 39.256 billion JPY (about 6.68 trillion VND, 250 million USD) with eight northern mountainous provinces to implement two major projects funded by Japan’s official development assistance (ODA), in Hanoi on June 12.
The eight beneficiary provinces are Cao Bang, Dien Bien, Lai Chau, Lang Son, Lao Cai, Son La, Thai Nguyen and Tuyen Quang.
The funding, provided through the Japanese Government and the Japan International Cooperation Agency (JICA), will support the Disaster-Resilient Rural Development Project and the Climate Change Adaptation Infrastructure Development Project for Ethnic Minority Communities in the northern mountainous and midland region.
Speaking at the ceremony, Deputy Minister of Finance Tran Quoc Phuong said the event is particularly significant, marking the first on-lending agreements signed under a bilateral loan agreement implemented after Vietnam’s administrative restructuring and the introduction of the two-tier local government model.
He said the agreements constitute the first step in implementing projects coded VN24-P1 and VN25-P1 in the eight provinces. Beyond providing a legal basis for project implementation, the agreements clearly define the responsibilities and obligations of all parties in managing using foreign loans, strengthening climate and disaster resilience, and fulfilling debt repayment obligations to the central budget.
According to Phuong, the signing carries added significance as Vietnam accelerates the implementation of the two-tier local administration model, helping enhance the initiative and accountability of local authorities while ensuring fiscal discipline and national public debt safety.
Japanese Ambassador to Vietnam Ito Naoki said the signing marked an important milestone in the implementation of Japanese ODA for northern mountainous provinces. He noted that a related agreement for Yen Bai province had already been signed between the Japanese side and Vietnam’s Ministry of Finance in March 2026.
According to the ambassador, the official loan agreement, signed under the witness of the Japanese Prime Minister during his recent visit to Vietnam, represents a meaningful landmark in bilateral cooperation and contributes to strengthening mutual trust and the Vietnam–Japan Comprehensive Strategic Partnership.
As part of the programme, provincial leaders signed the on-lending agreements with the Ministry of Finance and committed to fully disbursing allocated foreign capital according to plan.
Representing the beneficiary localities, Vice Chairman of the Tuyen Quang provincial People’s Committee Hoang Gia Long said the northern mountainous region is a strategically important area with a large ethnic minority population, where agriculture remains a key economic sector but is increasingly vulnerable to natural disasters and climate change.
He said JICA’s concessional ODA funding would help improve infrastructure, enhance climate resilience and livelihoods, while enabling localities to access advanced management experience, technology and knowledge. These benefits, he added, would contribute to sustainable development and narrow regional development gaps.
Participating provinces would implement the projects effectively, comply with regulations on public investment, procurement and ODA management, ensure timely provision of counterpart funding, strengthen coordination with the Ministry of Finance, central agencies and JICA, and fully meet debt repayment obligations under the signed agreements./
