Japan has agreed to loan Vietnam an additional over 41 billion JPY (over $289 million) for the development of Metro Line No. 1 in Ho Chi Minh City.

The loan agreement was reached between the two sides after Deputy Minister of Finance Le Tan Can and Japanese Ambassador to Vietnam H.E. Yamada Takio exchanged a cooperation document on the fourth STEP loan from the Japanese Government to the project on December 16.

This was held within the framework of a summit commemorating the 50th anniversary of ASEAN-Japan relations, witnessed by Prime Minister Pham Minh Chinh and his Japanese counterpart Kishida Fumio.

This is the fourth loan the Japanese Government has committed to fund the metro line project, following three previous loans in 2007, 2012, and 2016.

Ho Chi Minh City’s Metro Line No. 1, also known as the Ben Thanh - Suoi Tien line, is to run nearly 20 km between Ben Thanh Market in the downtown area and Long Binh Depot in Thu Duc city.

Work began in 2012 and the line is scheduled for operations in 2024.