The note of exchange to this regard was signed by Minister of Planning and Investment Nguyen Hong Phuc and Japanese Ambassador to Vietnam Sakaba Mitsuo in Hanoi on May 14.

The credit will help Ho Chi Minh City build the East-West Road and improve the water environment as well as to fund a national programme against climate change.

Japanese Ambassador Sakaba Mitsuo said at the signing ceremony that socio-economic assistance to Vietnam has also benefited Japan as the two countries share several strategic interests.

In reply, Minister Phuc said the Japanese Government’s early ODA commitment for the 2010 fiscal year has helped Vietnam finish major urban infrastructure projects on schedule, contributing considerably to the nation’s socio-economic development.

Since its resumption of ODA to Vietnam in 1992, Japan has always emerged as the largest donor to the Southeast Asian nation.

Japan’s commitments to Vietnam , including the above-mentioned credit, reached JPY1,586 billion so far. The 2009 commitment to over JPY145.6 billion reached the record level.

Japanese ODA has been largely disbursed for the nation’s major infrastructure projects.