Establishing a comprehensive framework for green transition.

Accelerating the green transition with new-generation ODA from Japan.

“The three pillars” include: perfecting financial and investment policies for green transition, including adjusting tax policies, public investment, developing carbon credit markets, green bonds, and green credit; implementing policies to realize the NDC (Nationally Determined Contribution) such as developing carbon markets, greenhouse gas inventories, energy transition, and perfecting the legal framework for electricity and renewable energy; and promoting the circular economy , especially in quality management,” said Mr. Duong Hung Cuong.

The third pillar is strengthening the capacity to adapt to climate change and recover from natural disasters. The government has issued the National Action Plan on Climate Change Adaptation; at the same time, it has improved the legal system on disaster prevention and control, enhancing the capacity to respond to and support recovery after extreme events.

Regarding the third pillar, a representative from the Ministry of Finance shared that, in the context of increasing climate change, extreme weather events have caused serious damage. Therefore, strengthening the adaptability and resilience of the economy and society is an urgent requirement.

“The government has issued the National Action Plan on Climate Change Adaptation for the period 2021-2030, with a vision to 2050, aiming to enhance the adaptation capacity of sectors, fields, and localities. In addition, the legal system for disaster prevention and control is being further improved by agencies such as the Ministry of National Defense and the Ministry of Agriculture and Environment, including the implementation of the Civil Defense Law, the development of disaster prevention and control plans, and strengthening preparedness for emergency situations,” said Mr. Duong Hung Cuong.

In particular, following the devastating Typhoon No. 3/2024, the Government issued numerous emergency support policies to help people and businesses quickly recover production and stabilize their lives. These solutions included tax reductions, credit support, debt restructuring, and mechanisms for managing financial risks for affected parties. This demonstrates that disaster risk management and climate change adaptation are increasingly becoming crucial components of socio-economic development policies.

Expected disbursement in 2026

According to information from the Ministry of Finance on the afternoon of March 18th, an ODA loan worth 50 billion yen from Japan (equivalent to approximately 8,350 billion VND or 320 million USD) is expected to be signed in March 2026. This will not only supplement financial resources but also contribute to promoting green transformation.

At the High-Level Workshop on Next-Generation ODA, the Program Loan for Green Transformation Towards Green Growth and Enhancing Climate Change Resilience, organized by the Japan International Cooperation Agency (JICA), Vietnam Office, in collaboration with the Ministry of Finance on March 18th, both sides focused on discussing the 50 billion yen next-generation ODA loan with a streamlined preparation process and rapid disbursement procedures; while ensuring development goals through sound policy design and efficient resource mobilization.

According to Deputy Minister of Finance Tran Quoc Phuong, in the coming period, the need for financial resources for green growth goals in Vietnam is significant. It is estimated that by 2030, the financial needs for emission reduction measures in each sector, in accordance with Vietnam’s environmental commitments, will be approximately US$68.75 billion.

Of this, the projected national funding is approximately US$24.7 billion, accounting for 36%, while the projected international funding is approximately US$44 billion, accounting for 64%. “To secure these resources, Vietnam hopes that foreign partners, including Japan, will continue to cooperate and support Vietnam financially, technologically, and in terms of human resources in this field,” said Mr. Tran Quoc Phuong.

Deputy Minister Tran Quoc Phuong emphasized that the approval and signing of the 50 billion yen loan in March 2026 is a very important result in concretizing the commitment of high-level leaders of the two countries in promoting “new generation ODA” cooperation.

Japanese Ambassador Ito Naoki affirmed: “The loan totaling 50 billion yen demonstrates the strong commitment of the Japanese Government to supporting Vietnam in achieving its Nationally Determined Contribution (NDC) goals, promoting green growth, and enhancing its capacity to respond to natural disasters in the context of increasing climate change.” Above all, this is a cooperation framework that embodies the potential of “ODA in the new era.” According to Ambassador Ito Naoki, the loan is not just traditional financial support but also a pioneering initiative. The program proposes projects applying artificial intelligence (AI) technology and satellite data from Japan to help Vietnam achieve green growth and disaster prevention.

Mr. Kobayashi Yosuke, Head of the JICA Office in Vietnam, added that the new loan is expected to be disbursed as early as 2026. The fact that it took only 8 months from the official request to the initial agreement between the two governments demonstrates the rapid response to actual needs.