Japan International Cooperation Agency Financing Six Coast Guard Ships for Vietnam

July 30, 2020 (Google Translation) – Japan International Cooperation Agency (JICA) signed a Japanese ODA loan agreement with the Government of the Socialist Republic of Vietnam in Hanoi on July 28, targeting the “Marine Security Capacity Building Project” with a limit of ¥36,626 million. We signed (Loan Agreement: L/A).

The South China Sea has a high risk of marine accidents due to the effects of natural disasters, and the risk of maritime crime has increased in recent years as the movement of people and goods has become more active, and the threat of smuggling, poaching, terrorism, etc. has been addressed. Strengthening crackdowns is an important issue. This project will promptly and appropriately carry out maritime rescue and maritime law enforcement, etc., for Vietnam, which has a long coastline in the north and south, by the maritime police of the country providing financial assistance to procure six patrol vessels. It aims to improve capacity and ensure maritime safety and freedom of navigation in the country. In addition to contributing to SDGs (Sustainable Development Goals) Goals 14 and 16, we will contribute to the realization of a free and open Indo-Pacific.

The Japanese technology utilization conditions (STEP) (Note) will be applied to the ODA loan for this project, and Japanese shipbuilding technology will be utilized.

(Note) Abbreviation for Special Terms for Economic Partnership. Conditions for the provision of an ODA loan created to promote Japan’s “visual aid” through technology transfer to developing countries by utilizing Japan’s excellent technology and know-how. The main contract is Japan Tide, and the subcontract is general untied. The main contractor must be a Japanese company, a subsidiary of a Japanese company located overseas, or a joint venture (JV. Japanese company is a lead partner) between the Japanese company and the borrowing country. Under certain conditions, a JV between a Japanese company and a Japanese company’s equity method affiliate (a Japanese company is a lead partner) can also be the main contractor.

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