The Ministry of Foreign Affairs of Japan, Vietnam’s biggest bilateral donor of official development assistance, has called for the revision of Japanese ODA charter to boost technology exports to spur its economic growth. The proposal came after Japanese aid has been reduced for the 11th straight year due to a tight fiscal situation in the Northeast Asian country, the Tokyo-based Kyodo news agency said June 30. The ministry was quoted by the agency as saying that the aid should be given to such priority areas as poverty reduction, including projects aimed at tackling climate change as well as those to ensure peace and prosperity in the world. The government should consider providing U.S. dollar-denominated loans, instead of yen, to avert forex risks and take an approach to offer aid under a grand scheme rather than responding to recipient nations’ requests for individual projects, it added. Japan’s ODA charter was last revised in August 2003, the ministry said, noting that it would take one year for the government to amend it. Japan pledged to grant $1.64 billion ODA to Vietnam this year compared to $2 billion last year.
