Japan has pledged to provide Vietnam with a 175 billion JPY (1.9 billion USD) loan for the 2012 fiscal year.

An agreement to this effect was signed between Deputy Finance Minister Truong Chi Trung and head representative of the Japan International Cooperation Agency (JICA) Motonori Tsuno in Hanoi on March 22.

Accordingly, the Japanese side will inject the sum into transport projects like the second stage of the Nhat Tan bridge–Noi Bai airport project, the third stage of the Nhat Tan bridge project, and the third stage of improving safety on the Hanoi–Ho Chi Minh City railway project.

Other projects include the Cai Mep–Thi Vai international port, the second turbine of O Mon thermo-power plant, upgrading the irrigation system in central Nghe An province and Yen Xa waste treatment in Hanoi .

According to JICA, the annual interest rate will range between 0.2 percent and 1.4 percent, and is due to be repaid over 30 - 40 years.

Addressing the signing ceremony, Trung stressed the significance of the agreement on the occasion of the 40 th anniversary of Vietnam–Japan friendship, which falls this year.

Japanese-funded projects contributing to Vietnam’s socio-economic development include Pha Lai, Phu My, Ham Thuan–Da Mi power plants, national high-way bridges No. 5, 10 and 18, Bai Chay, Thanh Tri and Can Tho bridges, Hai Phong port and Tan Son Nhat international airport.-VNA