JICA identifies four new cooperation pillars to support Vietnam’s transition toward a new growth model

Against the backdrop of Vietnam’s efforts to transform its growth model and achieve high-income country status by 2045, JICA will roll out a new support package based on four pillars, continuing to co-create new drivers of development and further strengthening the Comprehensive Strategic Partnership between Vietnam and Japan.

JICA Vietnam Chief Representative Kobayashi Yosuke at the mid-term fiscal year 2026 press briefing on October 7, 2026. (Source: JICA)

At the briefing, JICA Vietnam Chief Representative Kobayashi Yosuke said the new support package builds on JICA’s experience in human resource development, institutional reform, private-sector development and infrastructure development.

The four mutually reinforcing pillars are: science, technology, innovation and digital transformation (STI & DX) linked with human resource development; development of domestic enterprises and greater participation in global value chains; improvement of the investment environment; and development of strategic infrastructure.

The pillars are also designed to align with Vietnam’s new reform directions and development priorities, ranging from science, technology and innovation to enterprise development and energy security.

Science, technology and human resources: Putting people at the center

Under the first pillar, JICA identifies human resources as the “heart” of the transformation process. Support will range from policy advice and institutional development to higher education and research cooperation, with a focus on strategic technologies such as space technology, semiconductors, artificial intelligence and digital transformation. JICA currently cooperates with more than 20 universities and research institutions in Vietnam, including Vietnam-Japan University, Can Tho University and Hanoi University of Science and Technology.

One notable focus is JICA’s effort to promote the “circulation of brainpower” between Vietnam and Japan by connecting students, researchers, engineers and entrepreneurs from the two countries. Under the Japan Development Scholarship (JDS) Programme, 29 Vietnamese officials are expected to pursue master’s and doctoral degrees, while technical cooperation with Vietnam-Japan University entered its third phase in August 2026.

Beyond training, JICA is also promoting the application of technology to specific areas of development. A 50 billion yen loan for a green transformation support programme was signed in March 2026, while a project to strengthen digital transformation capacity in public transport and transport demand management in Hanoi was launched in July 2026.

Exchange of Notes between the Governments of Vietnam and Japan on the Japan Human Resources Development Scholarship (JDS) for fiscal year 2026. (Source: Communist Party of Vietnam Online Newspaper)

Domestic enterprises: Moving up the value chain

While the first pillar focuses on human and knowledge capacity, the second directly targets the capacity of domestic enterprises.

According to JICA, Vietnam has achieved significant success in attracting foreign direct investment, but the next challenge is to enable domestic enterprises to participate more actively in higher value-added activities and become important links in global production networks. JICA will support innovation, technological upgrading, technology transfer, business matching and access to finance.

One notable programme is the Keieijuku programme of the Vietnam-Japan Human Resources Cooperation Center (VJCC), which has trained more than 1,000 leaders and managers of small and medium-sized enterprises in Japanese management practices. JICA has also completed a loan programme for micro, small and medium-sized enterprises in rural areas through BIDV.

In addition, JICA is expanding cooperation with Vietnam in areas of importance to economic security, including energy, critical minerals and food security, including a survey on strategic oil and gas reserves.

Investment environment: Enhancing transparency and predictability

To enable businesses to grow and attract higher-quality investment flows, the third pillar focuses on the investment environment and institutional foundations.

JICA considers transparency, predictability and trust in institutions to be essential to an effective investment environment. Drawing on its long-standing cooperation in the legal and judicial sectors, JICA will continue to support Vietnam in improving its legal system, intellectual property protection and tax policies.

Another area of cooperation is support for the development of new governance arrangements, including the two-tier local government model. According to JICA, these reforms will not only serve Japanese businesses but also contribute to creating a more favorable environment for Vietnamese and international investors.

Pariticipants at the event. (Source: JICA)

From building facilities to developing human capacity

The fourth pillar focuses on the physical foundations needed for a new growth model, ranging from education and research infrastructure and advanced technological infrastructure to urban infrastructure such as urban railways, ports, roads, bridges, drainage systems and wastewater treatment facilities.

In May 2026, JICA signed two loan agreements totaling approximately 40 billion yen for essential infrastructure projects in eight northern mountainous provinces, including roads, irrigation systems, water supply and river embankments. JICA is also continuing to implement infrastructure projects in Hanoi and Ho Chi Minh City, including wastewater treatment and improvements to urban drainage systems.

Notably, JICA emphasizes technology transfer as an integral part of infrastructure projects. The objective is not only to complete infrastructure works but also to enable Vietnamese partners to acquire technologies from Japanese companies and organizations, thereby gradually building long-term technological and industrial capacity.

Co-creating the next stage of development

JICA views the four pillars as a mutually reinforcing support package rather than a set of separate programmes. Accordingly, no single pillar is positioned as an absolute priority; instead, JICA aims to implement a comprehensive approach covering all four areas.

This approach is consistent with JICA’s efforts to support Vietnam’s transition toward a new growth model while strengthening its capacity to adapt to changes in the international economic environment. The support package also reflects areas of growing importance in Vietnam-Japan cooperation, from green transformation and strategic technologies to economic security.

With the vision of “Connecting the World through Trust,” JICA reaffirmed its commitment to accompany Vietnam on its new development journey, toward a partnership grounded in trust, experience-sharing and the joint creation of capabilities for sustainable development.

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