GRIPS Development Forum > Diversifying PRSP > Ch. 5 Japanese development Cooperation in Vietnam
| The Japanese Government published its first assistance policy for Vietnam in 1994, and taking account of the recent socio-economic developments and the newly emerging challenges, it formulated the "Country Assistance Program for Vietnam" in June 2000. As this document indicates, Japan's Official Development Assistance (ODA) in Vietnam has given high priority to the achievement of balanced economic growth with two clear goals: (i) creating the basic conditions for sustainable growth; and (ii) supporting poverty reduction efforts. To pursue these inter-related goals, the five areas of assistance are specified (see Figure 1 below).
Among the five areas of assistance, the first two stress the importance of Vietnam's human resource development and institution building, industrial development, and infrastructure development so as to create an attractive environment for private investment. At the same time, the remaining three areas address new social problems that emerge in the process of rapid economic growth, such as the widening of regional and income inequalities, and environmental degradation associated with rapid urbanization.
Figure 2 indicates Japan's ODA to Vietnam by priority area of assistance. This suggests that Japan has intensively supported: (i) Vietnam's transition to a market economy with long-term development vision, through policy research, institution building and human resource development, as well as (ii) infrastructure development in the transport and power sectors, etc.