The loan will help to develop infrastructure around the country.
A diplomatic note regarding official development assistance (ODA) for the fiscal year of 2014 was signed by the Minister of Planning and Investment, Mr Bui Quang Vinh, and the Japanese Ambassador in Vietnam, Mr Hiroshi Fukada, on March 31.
According to the document, the ODA total reached $937 million to develop seven programs in Vietnam. The allocation includes $260 million for the North-South Expressway Construction Project (Ben Luc - Long Thanh Section). The thermal power plant project in Thai Binh will receive over $82.5 million.
Moreover, the electricity credit project will be supported to the tune of about $250 million, with water supply infrastructure in Nhon Trach and the project to process waste water in Ha Long city given $124 million and $8.87 million, respectively.
Amounts of $87.4 million and $125 million will be allocated for the improvement of Can Tho University and a project to respond to climate change.
Since re-sponsoring ODA to Vietnam in 1992, Japan has been the largest sponsor to the country. However, due to economic difficulties in Japan, aid declined 50 per cent in 2014 compared to 2013. Including the latest ODA, Japan has supported Vietnam with about $20.9 billion.
"The ODA of Japan has contributed to the development of Vietnam in important infrastructure projects, accelerating Vietnamese development in recent years," Mr Vinh said.