Diplomatic relations between Vietnam and Japan were officially established on September 21, 1973 and this year the two nations are celebrating 40 years of relations. This relationship is growing and has achieved many positive results in the fields of economy, trade and investment, especially after the signing of the Japan-Vietnam Economic Partnership Agreement. The leaders of the two countries have chosen 2013 as the Vietnam - Japan Friendship Year, opening up the opportunity for the two countries to further strengthen their multi-faceted cooperation, promote exchanges and enhance mutual understanding between the peoples as well as among localities of the two countries.

Currently, Japan is the biggest ODA sponsor of Vietnam. During the period from 1993 to 2012, over US$56 billion in ODA was granted to Vietnam, accounting for 71.69 percent of total ODA commitment, of which preferential loans were US$51.607 billion (88.4 percent) and non-refundable assistance US$6.76 billion (11.6 percent). Japanese ODA sources have made a significant contribution to the sustainable development of Vietnam.

The Japan International Cooperation Agency (JICA) in Vietnam has provided assistance to Dak Lak province through specialized credit programmes SPL (from I to VI) with the total budget of VND200 billion, focusing on transportation, irrigation, electricity, water supply and other areas.

Apart from receiving ODA sources through programmes and projects, Dak Lak was also financed from Japan’s Grant Assistance for Grassroots Projects (GGP). In 2013 the Consulate General of Japan in Ho Chi Minh City funded 2 projects in Dak Lak. The first is the potable water supply project at Kuaih Village, Ea Kenh commune, Krong Pak district with the total capital of US$90,495, supplying potable water to improve hygienic conditions and living quality for 170 households of the village. The second is Le Hong Phong elementary school building project with the total budget of US$120,460 to help solve the shortage of classrooms.

In addition, JICA has also supported Dak Lak to make the master plan of socio-economic development for Buon Ma Thuot city.

In terms of foreign direct investment (FDI), as of June 2013 there were two Japanese-invested companies in Dak Lak, including one project invested by Milestone Company to build Vietnam – Japan Bio-ethanol Factory located in Hoa Phu Industrial Zone with an area of 20 ha and an investment of over US$85 million.

Japan’s investment has been carried out effectively, which helps boost the province’s socio - economic development. The People’s Committee of Dak Lak Province has directed relevant agencies to closely cooperate with JICA to implement projects efficiently, timely solve difficulties and remove obstacles.

The Provincial People’s Committee issued Plan 5315/KH-UBND dated September 11, 2012 to direct departments and agencies to organize activities in response to the 40^th anniversary of bilateral diplomatic ties and the Vietnam-Japan Friendship Year. The plan focuses on stepping up the promotion of Dak Lak tourism for Japanese tourists, participating in workshops and forums on trade promotion and Japan’s investment attraction, creating favourable conditions for Japanese ODA, FDI and NGO projects, and strengthening information exchange between Dak Lak and the Embassy and its counterparts of Japan.

Source: VCCI