JICA helps Vietnam with SOEs, bank restructuring

The tabled issues are the two major research programmes the Japanese agency is working on to give advice to the Vietnamese Government. 

During the meeting in Hanoi on June 16, Tomiyoshi and other Japanese experts raised systematic, fundamental and breakthrough proposals for SOEs restructuring as well as the settlement of bad debts and commercial banks with poor performance in the next five years. 

JICA would provide Vietnam with technical assistance in building policies in order to complete a legal framework dealing with bad debts and weak credit institutions, and to improve the performance of large-scale SOEs by using loans granted by strategic investors or Japanese banks, they said. 

Deputy PM Vuong Dinh Hue affirmed that enhancing macro-economic stability, accelerating the transformation of the economic growth model in tandem with economic restructuring in major areas and concretising development targets in a more rapid and sustainable fashion are among goals set by Vietnam in the next five years. 

He described JICA’s research on Vietnam’s restructuring of SOEs and banks over the recent past as a significant policy aid and consultation helping the Vietnamese Government reach the set objectives. 

The Government will ask relevant ministries and agencies to closely coordinate with the agency to promptly complete policy recommendations, the official said. 

The Deputy PM noted his hope that the Japanese experts will base their recommendations on Vietnam’s reality when they assess the restructuring and compare it with solutions Japan had applied successfully in the past, especially to bad debts and bank restructuring. 

He displayed his belief that with strong political resolve, the endeavours of local ministries, agencies and localities and with the support of international friends like Japan, Vietnam will successfully fulfill its economic restructuring targets and make more rapid and sustainable developments, he said. 

The official also thanked the Japanese agency for its support to Vietnam in building infrastructure in service of the country’s industrialisation and modernisation, thus contributing to the extensive strategic partnership between the two countries.