vietnam japan trade 10jul2

vneconomy

The two-day visit, which starts today, will usher in a new chapterin the two countries' high-level communication, which includes exchanges of visits and awide range of activities aimed at fostering closer co-operation.

Despite its poor natural resources and large population,Japan has become the world's second largest economy with a gross domestic product (GDP) ofabout US$4,300 billion. Japan has been Viet Nam's largest official development assistance(ODA) provider since it resumed aid to Viet Nam in 1991, and is among its largest tradeand investment partners.

In the past 10 years, Japan has granted Viet Nam $7billion in aid, accounting for 40 per cent of total ODA committed in Viet Nam byinternational donors.

Viet Nam is also the second-largest recipient of JapaneseODA.

Though Japan was forced to cut its ODA funds to developingcountries in 2002, it still pledged to increase its assistance to Viet Nam by 8 per centat last year's Viet Nam Donor Consultative Group meeting.

Japan had invested in 335 projects worth about $4 billionin Viet Nam by the end of last year, making it the third-largest foreign investor afterSingapore and Taiwan.

Japan-invested projects have been conducted in 28provinces and cities nation-wide. Ha Noi and HCM City alone have 200 projects worth $1.6billion, accounting for 42 per cent of Japan's total investment in Viet Nam.

The two countries are negotiating an investment protectiontreaty that would ensure Japanese investors equal treatment in Viet Nam.

Almost all of Japan's investment projects fall into one ofthe following sectors: industry, agriculture, forestry, post and telecommunications, orhotel services.

Two-way trade between Viet Nam and Japan reached $5billion last year.

Viet Nam's export turnover to Japan was nearly $2.5billion, representing 17 per cent of its total export value.

Moreover, Japan has hosted almost 6,000 Vietnamesestudents and some 80 students are granted a Japanese scholarship every year.

The Japanese Government has also offered 9.5 billion yento build 195 primary schools in the highlands and coastal provinces.

Thetalks were the sixth round of meetings between the two countries' deputy foreignministers, this time matching a delegation led by Deputy Foreign Minister Le Cong Phungwith a visiting delegation led by Deputy Foreign Minister Toshiyuki Takano.

During discussions in a friendly, understanding andrespectful atmosphere, the two sides hailed the impressive strides taken in Viet Nam-Japanrelations.

Progress was being made in ties across all areas, theysaid, including politics, investment, trade, culture and education.

The Vietnamese side briefed the visiting Japanese team onViet Nam's socio-economic situation and its foreign affairs policies during the doi moi(renovation) process.

The visitors confirmed Japan's policy of respect for VietNam's role in the region, and its support for doi moi.

The talks then turned to the two countries' efforts toconsolidate peace, stability and enhanced co-operation based on both a bilateral andmultilateral framework.

They also exchanged views on events and economic trends inthe Asia-Pacific region and the world. The two sides agreed that the outcomes of themeeting would contribute to promote deeper understanding between the two countries, andshould help strengthen their relations in the years to come.

It was also agreed that this series of meetings shouldcontinue into the future. Later the same day, the visiting delegation was received byForeign Minister Nguyen Dy Nien.

This and other key figures were thrown up by an Asia wide survey by the JapanExternal Trade Organisation (JETRO) conducted from late last year among 2,073 Japanesemanufacturing firms in 10 Asian countries.

Profitable ones accounted for 62 per cent of the totalnumber of Japanese firms in the country, up 4 per cent from 2000.

While this is still low compared with the ASEAN andChinese averages of 70 per cent, JETRO said that confidence in Viet Nam's economic outlookwas higher than in ASEAN's and China's.

About 53 per cent of Japanese firms believed the businesssituation here will improve, as against 37 per cent polled by ASEAN and 49 per cent byChina. The country's export potential, expansion of the domestic market and lower pricesof inputs for production were the reasons behind the confidence.

As many as 36 per cent of Japanese firms in the countryexported 100 per cent of their products, much higher than the rate in other ASEANcountries and China.

The proportion of firms selling all their products locallywas also high - 27 per cent - as against 10 percent in ASEAN and 14 in China.

"For Japanese companies, Viet Nam has the distinctivefeature of either being an export-oriented production base or one for the domesticmarket," the survey said.

Most of the polled companies said that Viet Nam's greatestadvantage lay in its political and social stability; only 2.4 per cent did not believe sowhile the corresponding figure was 3.2 per cent for Thailand, 40 per cent for thePhilippines and 59 per cent for Indonesia.

Other advantages mentioned were the fewer labour problemsand lower pressure for pay rises.

The disadvantages they pointed out were complicatedadministrative procedures and an inadequate legal system, which handicapped the fightagainst imitations and spurious products.

Many also believed that local infrastructure was notoptimal, causing difficulties in sourcing local materials.

The biggest obstacle -mentioned by 61 per cent of Japanesefirms - was the dearth of spare parts, and the' resultant high price, with most having toimport them.

While most of them appreciated the skill and capacity ofVietnamese engineers and workers, they rated local managerial staff fairly low.

"In this regard, if development of human resources ispromoted, Viet Nam can be a place rich in skilled labour," the survey concluded.

JETRO said many Japanese companies in Viet Nam were nowentering their fifth year of operations, looking ahead now to a period of growth, andsought the Government's help in addressing the remaining investment obstacles.

"Based on the belief that the success of the investoris the best advertisement for new investors, we call on the Government of Viet Nam tofurther improve the investment environment," said JETRO.

"Correcting restrictive mechanisms and regulations,strengthening the enforcement of laws on imitations and counterfeits and developingcapable managerial resources is the way ahead," it said.

In the context of other Asian countries' restructuring, itadded, Viet Nam should also draw up preferential policies such as reducing cost ofelectricity, communications and transportation

The meeting wasattended by Pham Hong Ky, representative of the Ministry of Planning and Investment in thesouth, and officials of the services of Planning and Investment in HCMC, Binh Duong, DongNai, Ba Ria-Vung Tau, the HCMC Export Processing Zone and Industrial Park Authority, theInvestment and Trade Promotion Center, the Service of trade, and the Japanese BusinessAssociation in HCMC.

Ichikawa said Vietnam had licensed 40 Japanese-investedprojects in 2001 with combined registered capital ofUS$163 million. The southern provincesattracted 29 small-scale projects worth a combined US$23 million only, while 11 projectscommitted into the north boasted a total investment capital of up to US$140million.

Cannon was the biggest of the projects licensed into thenorth last year with aninvestmentcapitalofUS$76million. In addition, large Japanesecompanies including Dentsu, Sumitomo Berk Light and Nichias have also carried out projectsin the north. In March, a Japanese company also established a sanitary ceramic jointventure with total registered capital of US$23million. Toto Vietnam Co. Ltd. will be ableto bring out some 400,000 products annually, half of the output planned for export to theChinese market.

However, deputy director of the HCMC Service of Planningand Investment Luong Van Ly expressed concern at the meeting that many Japanese investorswould skip Vietnam to in their planned investment in Southeast Asia.

A document from the Japan Bank for InternationalCooperation(JBIC) shows that more than 50% of the Japanese companies surveyed want toexpand investment in China, and the others prefer Malaysia, Indonesia, the Philippines andThailand in 2002 and the coming years.

Ly said the trend showed in the document was a bigchallenge for Vietnam as the investment source from the Land of the Rising Sun has beenbig in the past years. To cope with this situation, he proposed the HCMC government andcentrally run agencies find more effective measures to attract Japanese investors.

Ichikawa said many Japanese investors had recognized theVietnamese Government's great efforts to improve the investment environment but they stillhad to face problems with lower administration agencies.

Another hurdle is that Japanese investors find it hard tosecure sufficient materials in Vietnam and shore up sales here because of the smallmarket. Furthermore, infrastructure is still poor and this is also the main reason thatdiscourages Japanese companies to pour their money into country

"While Thailandand Malaysia gained much experience in attracting foreign investment in the 1980s, VietNam and Indonesia

now possess their own competitive edge: -skilled,high-quality human resources." Imai said the fact that Japan's investment in Viet Namhas steadily increased each year was a testament to the improving business climate here.

"While there has been an increasing tendency forEuropean and American firms to invest in China, Japan still attaches great importance toASEAN countries including Viet Nam," he declared.

He cited the introduction of the Enterprise Law, theamendments to the Law on Foreign Investment and changes to the Labour Code as some of VietNam's most significant reform initiatives.

"I believe these changes have laid the basis forincreased confidence among investors here, which will help Viet Nam's economicgrowth."

Imai said the governments of Viet Nam and Japan are in theprocess of negotiating an agreement on trade and investment.

The agreement will see Viet Nam grant Japanese businessespreferential treatment when investing in the country, while Japan will advise Viet Nam onsolving domestic corporate problems.

"This autumn, Keidanren's Japan-Viet Nam EconomicCommittee will join forces with Viet Nam's Ministry of Planning and Investment (MPI) tohold a seminar in HCM City to survey businesses' opinions on their existing problems," Imai said.

"With the MPI already having set up a working groupon this matter, we hope corporate concerns will be addressed after such seminars. "

Keidanren is committed to helping Viet Nam buildup itsprivate sector, which Imai described as a crucial engine for economic growth.

The agency will send experts to Viet Nam to organisetraining for Vietnamese entrepreneurs, and will offer scholarships to talented youngVietnamese students.

Keidanren mission

Imai was leading a Keidanren mission to Ha Noi as part ofa fournation tour of Thailand, Singapore, Indonesia and Viet Nam.

The group hopes to get a clearer picture of the economicsituation in these countries and forge ties with their governments and business leaders.His visit comes as Japan is being urged to review its economic ties with the Associationof Southeast Asian Nations (ASEAN) members in the context of the growing competitivestrength of China.

China and ASEAN have decided to begin negotiations on afree trade agreement, with a 10year deadline.

In addition, Japanese Prime Minister Junichiro Koizumiused his visits to several Southeast Asian countries in January of this year to spell outhis ideas for comprehensive economic co-operation between Japan and ASEAN.

Keidanren's policy is therefore to re-examine andre-evaluate the direction of relations between Japan and ASEAN's members, with a view todetermining how Japan, ASEAN and China can ensure mutually favourable co-existence andprosperity

He thanked the Japanese Government, business sector and people fortheir wholehearted assistance to Viet Nam's doi moi (renovation) process and singled outfinance and technology assistance as extremely useful. The Party leader told Imai Takashi,chairman of the board of directors of Nippon Steel Corporation and chief of the visitingdelegation, that Viet Nam was committed to consolidating and expanding bilateral ties withJapan. These ties would serve peace, stability, co-operation and development in the regionand across the world.

Takashi said he and his delegation had been very impressedwith the solid development of multi faceted ties between the two nations. He lauded theVietnamese Government's reform efforts, particularly its work to improve the domesticinvestment environment and its active integration into the international economiccommunity.

Takashi told his host that union members would strive tomake even greater future contributions to promoting trade and investment ties.

They vowed to help Viet Nam continue along the developmentpath

Ambassador Yamazaki hoped Viet Nam would use the ODA effectivelyand that the loan would contribute to boosting socio-economic development in the country.

He noted that Japan and Viet Nam would celebrate 30 yearsof diplomatic relations next year, and said the occasion offered another opportunity tostep up relations in all fields. Last financial year, Japan provided Vie t Nam withJPY74.3 billion (or about $595 million) in ODA loans, marking a 5 per cent increase over2000

The minister held a series of intensive discussions with a range ofsecurity-related agencies, aimed at seeking fresh avenues of co-operation. Relationsbetween Viet Nam's Public Security Ministry and related Japanese agencies havestrengthened rapidly in recent years. Impressive progress has been made in exchangingcrime-related information, and in sharing experience of fighting organised crime,drug-related crime and international terrorism.

Japan's fire-fighting agency has also provided theVietnamese Public Security Ministry with equipment and helped the ministry trainpersonnel.

During the talks, the two sides agreed to boostmulti-faceted cooperation and the exchange of information in the fight againstinternational terrorism, issues relating to security -and social order, and other issuesof common concern.

Both sides expressed their wish to continue promotingco-operative ties of mutual trust and longlasting stability between the two countries indiverse fields, including public security.

Minister Huong highlighted the efforts made by theVietnamese police force to make his country a safe destination for Japanese investors andholiday-makers.

During his visit, which was made at the invitation of theJapanese Government, Huong, who is also a Politburo member of the Communist Party of VietNam Central Committee, had working sessions with a range of high-profile Japanese securityfigures.

These included the chairman of the National Public SafetyCommission, Jin Murai; the director of the National Police Agency Setsuo Tanaka; thedirector of the National Fire Fighting and Rescue Agency Ishii Takakadzu; and the chairmanof the Japan Fire Fighting Association, Ma Tokuda.

He also paid courtesy visits to Secretary-General of the

Liberal Democratic Party and chairman of the Japan-VietNam Parliamentarians' Friendship League, Taku Yamasaki, and . Foreign Minister YorikoKawaguchi.

During these meetings, both sides expressed their pleasureat the remarkable development in bilateral economic co-operation.

Japan is Viet Nam's biggest trade partner and. donor, theynoted, and two-way trade and mutual understanding between Japan and Viet Nam areconstantly increasing.

The Vietnamese minister and his entourage called at thePolice Agency's. Information Control Centre in Tokyo and the Customs Agency in Kobe.

They also visited a number of economic, cultural andsocial establishments in the cities of Tokyo, Osaka, Kyoto and Kobe

The projects, in the provinces of Thanh Hoa and Quang Tri, areworth, up to US$166,054 combined.

Thanh Hoa Province's Tinh Hai Commune, in Tinh GiaDistrict, will get funds to expand its primary school and upgrade roads surrounding theschool.

The communal People's Committee will construct 10 newclassrooms at the school, which is currently in a very poor state of repair.

The school, built in 1979, holds 1,349 students throughoutits 22 classes.

It has no electricity and its classrooms are built frombamboo and mud, making them vulnerable to the ravages of natural disasters.

Some of its pupils are split into three shifts, to allowthem all to attend school, and small, cramped classrooms make it difficult to learn.

The village, close to the ocean, is often hit by typhoons.

Roads are sometimes flooded, making it dangerous to passor keeping the students home from school.

Japan's Government, at a signing ceremony yesterday, saidit would extend up to $79,399 to build more classrooms and upgrade roads.

Tinh Hai Commune is in a poor, coastal region and home to5,479 people.

The main products are peanuts and shrimp, but life isstill hard for many residents and provincial officials said 33 per cent of the populationare in poverty.

The Japanese Government last week also pledged up to$86,655 to upgrade drainage and construct a bridge in Quang Tri Province's Hai DuongCommune.

The aid, in Hai Duong District, is worth up to $86,655 andwill partially bankroll the purchase of necessary building materials.

Hai Duong Commune, located just 0.5m above sea level, is apoor agricultural commune with a population of about 4,955. They have no incomeopportunities aside from growing rice and the farmers' annual average income is just $95.

The commune is highly susceptible to floods. Improvingdrainage, reducing the risk of floods and improving transportation access would helplocals stabilise their lives

Shigeo Naruse, managing director of the Japan External TradeOrganization (Jetro) in HCMC and head of Task Force, said HCMC, Dong Nai, Binh Duong andBa Ria-Vung Tau should compile a list of equipment and material suppliers to encouragemore Japanese investment.

According to a recent meeting of Japanese investors todiscuss the investment climate, HCMC is losing out to China's Shenzhen where materials are10% cheaper, Naruse told a meeting with the HCMC Service of Planning and Investment,Service of Trade, and Industrial Park and Export Processing Zone Authority.

Jetro consultant Kyoshiro Ichikawa said local authoritiesshould create favorable conditions to promote trade exchanges between Japanese andVietnamese companies for mutual benefit.

"Japanese manufacturers of electronic and motorcyclecomponents in the city's industrial zones are required to export 80% of output whiledomestic assemblers have to import these components from other countries," Ichikawasaid, and he proposed that components purchased from the Japanese companies be calculatedas local content to promote trade.

"Most Japanese companies plan to invest in high-techindustries in Vietnam, so good electricity supply and modern waste treatment facilitieswill count when they consider their investment destinations," Ichikawa said.

In the first eleven months of the year, 31 Japaneseprojects with combined registered capital ofUS$151 million were licensed in Vietnam,compared with 27 projects capitalized at US$81 million in all of 2000.

The newcomers brought the aggregate number of Japaneseprojects in Vietnam to 327 worth US$4.06 billion, making that country the third largestinvestor in Vietnam after Singapore and Taiwan in terms of pledged capital. However, ifrealized capital counts, Japan is the largest investor with US$2.95 billion, according toIchikawa.

Task Force was established by the Japan BusinessAssociation and the services of planning and investment of HCMC, Dong Nai, Binh Duong andBa Ria-Vung Tau

Japan offers 8% rise in 200, ODA pledges
(SGT- 10/12/2001)- Japan has boosted its 2002official development assistance (ODA) pledges for Vietnam by 8°/a to 91.6 billion yen, orUS$750 million, despite curbs on its global aid program. "Growing Vietnamese

economy and Government initial' success in institutional

reforms are behind Japan's decision," said MasashiNamekawa, deputy director general of the Japanese Foreign Ministry's Economic

Cooperation Bureau.

"Moreover, Japan attaches great importance toVietnam's role in the region's development, and its expansion will bring stability toASP-AN and

Asia," he told reporters after the conclusion of thetwo-day annual Consultative Group Meeting on Saturday.

The fresh aid will go to key infrastructure projectsincluding the O Mon Thermoelectric Power Plant, a Mekong Delta Transformer Station, HaiVan Pass tunnel, abridge spanning the Red River and the HCMC East-West Highway.

Two projects that will be given low-interest loans are BaiChay Bridge and new Tan Son Nhat Airport terminal.

The Japanese government also pledged 8.3 billion yen innon-refundable aid for projects in education, health care and rural transport.

Vietnam is Japan's second largest ODA recipient afterIndonesia

In thisconnection, over twenty Japanese enterprises attended last Friday a conference on energyco-operation between the two countries, organised by the Ministry of Industry and AsiaPacific Energy Forum.

Most of these -including big industrial groups such asToshiba, Mitsui, Sumitomo -are engaged in industrial production, electricity productionand transmission, oil, gas and coal exploration and processing.

While Japan has been interested in the local energysector, co-operation between the two nations has not gone much beyond official developmentassistance.

Private investments have only come from Tokyo ElectricityCompany and Sumitomo Group, who are taking part in the Phu My 2-2 Build-Operate-Transfer(BOT) project.

Japan has supported Viet Nam in thermal electricityprojects such as Pha Lai 2 and O Mon and hydro-power projects such as Ham Thuan Da Mi andDai Ninh. It has also helped develop the 500KV transmission line and rural electricitynetwork.

Its total aid to the Vietnamese energy sector has mountedto 228 billion yen (about US$1.8 billion), accounting for 35.1 per cent of Japanese ODAfor Viet Nam

Of the countries, Vietnam is notablefor its stability, he said. However Japanese will not return after they have left thecountry due to some failure of their expectation, said the consultant, who proposed theGovernment to further improve the local investment environment.

In Vietnam, Japanese are interested in projects to produceconsumer goods for the local market while some of them are involved in export

oriented projects, which are mostly successful. The localmarket, with consumer spending lower than expected, has seen a fierce competition amonghome-made goods, and between these and illegal imports from bordering countries. This hasdiscouraged Japanese investors of the first category.

Japanese have also hired local businesses to perform theirsub-contracts to benefit from Vietnam's cheap labor cost. However, China has in recentyears gained impressive results in alluring foreign investors. With a large market and anavailability of local made materials, China has made the best of its distinct advantages.Ichikawa said Vietnam should make extensive search of China to improve itself.

Japanese investors in Vietnam expect the country tospecify incentives offered to them and implement the incentives. They have also proposedlocal authorities to reduce costs related to infrastructure facilities and services,especially telecommunications charges.

The consultant said regulations on the performance ofsub-contracts between a local business and a company located in an export processing zoneare not clear, and the one-price system applied to both local and foreign investors isslow to take shape.

At present, there are more than 300 Japan-investedprojects in Vietnam with a combined capital of nearly US$4 billion, 205 of which areoperational. Three fourths of this are production projects

The Tokyo-based Ishikawajima-Harima Heavy Industries Co. Ltd. presented four technical solutions for the tunnel construction at a meeting with relevant agencies late last week.

The project management unit told the Daily that earlier two Japanese companies mooted their proposals to involve in the tunnel construction.

The project requires an estimated investment capital of VND8,100 billion, 85% of which will be provided by Japanese loans. It is aimed at building a 24-kilometer road, including the 2-kilometer tunnel, which runs through the districts of Binh Chanh, 6, 8, 5, 1, and 2.

The project's design is being considered by the Government, and construction is scheduled to start next year and be completed hi mid-2005.

The Government gave its blessing to the feasibility study last July

(VET-09-07-2001)- Deputy Finance Minister, Le Thi Bang Tam, signed yesterday in Ha Noi with the Japan Bank for International Co-operation (JBIC), a loan agreement , under which Japan will fund for the construction of Bai Chay Bridge, worth US$56.7 million.

The bridge is 1,172 m to be made up of pre-cast concrete segments which will be 25m wide. It will have a navigable clearance height of 50m, and 130m width to allow 40,000 tons ship to dock.

The bridge will serve the major trade hub of Ha Long city in the northern province of Quang Ninh. Additionally once finished, it will be a notable addition to the natural landscape of the world famous Ha Long Bay.

Mrs. Bang Tam was quoted as saying that the agreement will come into effect in a month and the JBIC will begin providing finance for the scheme, which is under the control of the Ministry of Transport.

This is the first Japanese loan agreement offered to Vietnam during this fiscal year. The loan will be repaid over 40 years, with an interest rate of 0.95 percent per year. Japan will offer Viet Nam 10-years grace on the repayments.

The bidding is scheduled to begin later this year and construction work should begin late of the first quarter of 2002. The work is expected to be completed by late 2006

(VNS-10-07-2001)- The dated skills of Viet Nam's engineers are getting an overhaul with the help of Japanese technicians.

Viet Nam's technical qualifications are about 40 years behind those of Japan and about 30 years behind the Republic of Korea and Taiwan, Daiju Kimura told a seminar on engineering and technology transfer in Ha Noi last week.

The training and human resources of technical workers need to be improved urgently, he said.

The seminar was organised by a joint project of the Japanese International Cooperation Agency (JICA) and the Ha Noi Industrial College (HIC). Kimura is the chief advisor to the project.

The joint project was granted US$8.5 million by the Japanese Government in July 2000, through the JICA. The Vietnamese Government provided VND14 billion in partner capital.

The five-year project aims to strengthen the vocational training of engineers and increase the skills of technical workers at HIC.

Kimura said five Japanese qualified experts have organised training courses and implemented technical transfer. About 22 teachers from HIC have been trained, but this number will be increased to 30.

Each year, about four Vietnamese trainees go to Japan to study new approaches to technology.

In July, new machines were built in HIC to begin the transfer of technical skills on the CNC lathe machine, press brake and sequence control.

The project has so far composed textbooks on subjects such as basic theory for NC programming, occupational health and safety, and manner and etiquette in workshops

(VNS-27/06/01)- Japan has proffered a loan of US$54.4 million to construct a bridge to serve the major trade hub of Ha Long city in the northern province of Quang Ninh.

The bridge, which will span the Cuu Luc Strait in the Bai Chay area, will replace a fleet of ferries which are stretched to capacity with the increase of trade in the region.

The loan, documentation for which was signed yesterday in Ha Noi, will be repaid over a 40 year period with an interest rate of 0.95 per cent.

Japan will offer Viet Nam a 10-year grace period on the repayments.

Bai Chay, in the world-famous Ha Long Bay, is located in the middle of National Highway No 18 which spans 320km in its run from Ha Noi to the Chinese border.

The strait is currently traversed by ferry, but with traffic volumes growing rapidly bottle-necks are starting to afflict the key transport route.

Plans to upgrade and expand the Cai Lan sea-port within Bai Chay may mean the end for the ferry service.

If the port hosts an increasing number of larger vessels, the route of the ferries would impede their smooth entry and exit.

Japanese Ambassador to Vie t Nam, Ryuichiro Yamazaki, and Minister of Planning and Investment, Tran Xuan Gia, yesterday signed the loan pledge documents.

The funds will bring Japan's total loan assistance to Viet Nam to nearly $5.4 billion since 1992.

The Japanese Embassy said the funds aimed to continually assist Viet Nam, which was hit by the repercussions of the 1997 Asian financial crisis, in its efforts to institute a market-oriented economy

(VNS-25-06-2001)- The Japanese Government has pledged US$35 million in non-refundable aid to build bridges in the Cuu Long (Mekong) Delta.

The funds will bankroll the construction of 21 bridges, from a total plan of 38 in the water-locked region.

Viet Nam will kick in $7 million of the entire project's cost, said Bui Tien Dung, director general of local investor the Ministry of Construction's Project Management Unit 18.

The Japanese Pacific Consultant International Co. (PCI) will design the 21 bridges, spanning some 1,311 m, involved in this branch within the next two months and bids for construction will open in October.

The remaining 17 bridges, spanning 872m, will be designed and built. by Vietnamese workers with Japan providing the steel girders.

Work is slated for completion within 29 months of the starting date in December this year, he said.

This is the second time the Japanese Government has donated funds for bridge building.

In 1998 it helped build 29 bridges in 16 northern provinces.

Under the agreement between the two sides, the non-refundable aids will help upgrade rural infrastructure and alleviate hunger and poverty.

More aid would be forthcoming for 18 central provinces and the Tay Nguyen (Central Highlands) by 2005, he said