JICA: “At least ¥100 billion in annual ODA for Vietnam; all-out support for transition to a new growth model”

【HANOI, Vietnam—Correspondent Kim Jun-seok】The Japan International Cooperation Agency (JICA) is pursuing plans to increase its annual ODA loan commitments to Vietnam to at least ¥100 billion (about 846 billion won), in line with the country’s funding needs for economic growth. It will also launch a comprehensive support package to help Vietnam transition to a new economic growth model.
According to local media and other sources on the 8th, JICA’s Vietnam Office held a mid-year press conference for fiscal 2026 in Hanoi the previous day and announced this direction for its cooperation with Vietnam. At the press conference, Yosuke Kobayashi, JICA’s Vietnam chief, said that “Vietnam has entered a new stage of development, aiming to become a high-income country by 2045.”
Kobayashi continued, saying that “Vietnam has risen to become one of Asia’s most dynamic economies through a growth model that relied on labor-intensive manufacturing, foreign direct investment (FDI), and opening up to global markets.” He said that “the time has now come for Vietnam to secure new growth drivers based on science and technology, innovation, digital transformation, institutional modernization, and stronger capabilities among local businesses.”
Accordingly, JICA plans to establish a comprehensive reform support package aimed at helping Vietnam transition to a new growth model and focus its efforts on four key pillars: △ developing talent in science and technology, innovation, and digital transformation △ strengthening the competitiveness of local Vietnamese businesses and integrating them into global value chains △ improving the investment environment △ developing strategic infrastructure.
Kobayashi added that JICA “plans to pay close attention to and expand support for industries in key strategic fields that will drive Vietnam’s future, including aerospace, semiconductors, artificial intelligence (AI), and digital transformation.”
Specific details on ODA loan disbursements were also disclosed. Chihiro Fukuda, deputy head of JICA’s Vietnam Office, said that Japan’s total ODA commitments to Vietnam from October 2025 through September 2026 amounted to ¥89.256 billion (about 755.1 billion won) across three projects. The projects supported during that period included two infrastructure development projects in northern mountainous areas and a loan for a green transition support program.
Fukuda said that “substantial funding is essential to achieving the annual double-digit economic growth target set by the Vietnamese government,” and emphasized that “to meet this large-scale funding need, we will raise the level of aid commitments and loans to Vietnam to at least ¥100 billion (about 846 billion won) a year going forward.” 

[email protected] Kim Jun-seok Reporter