On May 30th, 2016, a 166.124 billion yen ($1.49 billion USD) loan agreement was signed with the Socialist Republic of Viet Nam and the Japanese International Cooperation Agency (JICA) for infrastructure developments. This loan will be part of the Japanese International Cooperation Agency's STEP program which implies that the loan will go towards providing Vietnam with Japanese consulting for railroad construction, procurement of Japanese materials, Japanese consultancy, equipment and the construction of power plants.
The ODA loan agreement is for three major projects.
(1) Ho Chi Minh City Urban Railway Construction Project (Ben Thanh – Suoi Tien Section )
(2) Thai Binh Thermal Power Plant and Transmission Lines Construction Project
(3) Second Ho Chi Minh City Water Environment Improvement Project
Special Terms for Economic Partnership (STEP)
A stipulation in JICA ODA loan agreements is the utilization of advanced Japanese technologies and the employment of Japanese firms in overseas projects.