GRIPS Development Forum > Diversifying PRSP > Ch. 5 Japanese Development Cooperation in Vietnam
This is Japan's first, free-standing structural adjustment loan, whose conditionality was designed through bilateral policy discussions between Japan and Vietnam. This was a quick-disbursing loan, aimed at improving the balance of payments pressure and supporting the economic reform efforts by the Vietnamese government. The Exchange of Notes and the Loan Agreement were concluded in September 1999, and the loan amounting to 20 billion yen was fully disbursed in 2000. The Japan Bank for International Agency (JBIC) was the executing agency for the Japanese side.
Based on the agreements at bilateral policy discussions, the "New Miyazawa Initiative" supported a reform program covering three areas: (i) the formulation and publication of a program to promote private sector development; (ii) the diagnostic auditing of the selected large-scale SOEs; and (iii) the conversion of all non-tariff barriers into tariffs. In particular, reflecting Japan's real sector concern, the private sector development program ((i) above) aimed to promote private business activities in three areas and published a detailed action plan. In light of the importance to sustain these efforts, Japan has carefully monitored the reform progress, including the implementation of the action plan.