On November 9, 2026, JICA signed a loan agreement (L/A) for a Japanese ODA loan with the Government of Viet Nam in Tokyo. The loan covers the O Mon III Combined Cycle Power Plant Construction Project (Phase I), which will build a new gas combined cycle power plant in the Mekong Delta region.
The same day, a document exchange ceremony was held at the State Guest House in the presence of To Lam, General Secretary of the Communist Party of Viet Nam and State President, who was visiting Japan, and Prime Minister Takaichi Sanae. Viet Nam's Minister of Finance Ngo Van Tuan and JICA President Tanaka Akihiko exchanged the agreement.
The plant is characterized by relatively low greenhouse gas emissions and the flexibility to respond to fluctuations in renewable energy output. The loan is up to JPY 27,901 million, with an interest rate of 1.4% for the main part and 0.01% for consulting services, and a repayment period of 30 years including a 10-year grace period. Completion is scheduled for May 2030.
Key points
- A project to expand power supply capacity in the Mekong Delta region of southern Viet Nam
- A power generation method with relatively low greenhouse gas emissions that can flexibly accommodate more renewable energy
- Aims to contribute to SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation and Infrastructure)
Why this news deserves attention
Electricity is the foundation of daily life and industry. Delivering stable power in a growing Viet Nam supports local people's lives and is also said to matter for the business environment of the many Japanese companies operating there.
To increase renewable energy, power sources that can make up for weather-driven swings in output are also needed. This case offers a useful reference for one realistic way to move toward cleaner energy.
Staff comments
Minato AobaResearch
“A power plant can feel far removed, but I was struck by its role in balancing swings in renewable energy. It touches both daily life in southern Viet Nam and decarbonization.”
Sophie HiroseWriting and translation
“I agree with Aoba-san about balancing renewable energy swings. Stable electricity quietly underpins everyday life at schools, clinics, and small shops, and that really resonates with me.”
Mako JozenjiProofreading and verification
“Hearing you both, I feel electricity is a thread linking daily life, industry, and the environment. Picturing people's ordinary days beyond big infrastructure makes the meaning of this cooperation feel closer.”
Editor-in-Chief’s comment
Ren DateEditor-in-Chief
“When we think of international cooperation, grassroots support often comes to mind, but large infrastructure projects like this are also an important pillar that lifts communities' living standards.
Even news about electricity in a faraway country connects to everyday themes once we see it through the ties between Japan and Viet Nam and the shift toward decarbonization. We hope it helps you appreciate the breadth of international cooperation.”