GRIPS Development Forum > Diversifying PRSP > Ch. 5 Japanese development Cooperation in Vietnam

Country Assistance Program for 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.

Country Assistance Program for Vietnam
(by the Government of Japan, June 2000)
Goals: Achievement of Balanced Economic Growth with Sustainable Economic Growth and Poverty Reduction
Human Resource Development and Institution Building (particularly support to the transition to a market economy)

Priority areas of assistance:

  • Design and implementation of development policies, human resource development
  • Improvement of public administration, legal framework, financial system
  • Establishment of higher education system
Infrastructure Development

Priority areas of assistance:

  • Upgrading of infrastructures in transport and power sectors etc., to cope with increasing demand for power and cargo volume
Agriculture and Rural Development

Priority areas of assistance:

  • Improvement of productivity, food production and access to a market
  • Off-farm industrialization to absorb the excess labor force and generate higher income
Education and Health

Priority areas of assistance:

  • Improvement of facility and quality of primary education
  • Expansion of health service for poor people and upgrading of medical service installation
  • Prevention of polio and HIV, etc
Environmental Conservation

Priority areas of assistance:

  • Prevention of destruction of forests and water / air / soil pollution.

Japan's ODA to Vietnam by Priority Area 1991-2001


by fiscal year (April to March) and commitment base.
Source: JICA Vietnam Office, JICA Activities and Grant Aid Projects in Vietnam, May 2002.
JBIC Website, (Economic Cooperation, ODA Project Data)