November 11, 2011
The signing ceremony was attended, from left, by Mr. Murata, Director General, Office for Private Sector Partnership, JICA; Mr. Oshima, Adviser to the President, JICA; Mr. Do Minh Toau, Executive Vice-President, ABC; Mr. Ichikawa, Vice-President, JICA; and Mr. Le Long Son, General Director, Esuhai.
On November 11, the Japan International Cooperation Agency (JICA) signed a Loan Agreement with the Asia Commercial Joint Stock Bank (ACB), one of the largest private commercial banks in Vietnam, for Industrial Human Resources Development Project. It is the first project under Private Sector Investment Finance program (PSIF) since the initiative resumed in March of this year. After completing the appraisal of the Project under pilot approach based on the New Growth Strategy 2011 (approved by Cabinet decision on January 25, 2011), the Loan Agreement has come to be signed.
In this project, JICA will support under PSIF Esuhai Co., Ltd. (Esuhai) for school building construction in order to assist its business expansion with an aim of competent industrial human resources in Vietnam. For executing the project, JICA will provide a loan to Esuhai through ACB.
It has been pointed out that sufficient education for human resources in industrial sectors is an urgent issue for ensuring further sustainable development in Vietnam. Currently, between approximately 2,500 and 5,000 technical trainees are dispatched from Vietnam to Japan each year under Technical Intern Training Program with the objectives of transfer of skills and technology. Trainees receive two to three years of practical training at small and medium-sized enterprises in Japan. It is expected that, after returning to Vietnam, they will form a basis of economic development in Vietnam. On the other hand, organizations in Japan that accept the trainees have pointed out that solid language education and job training prior to their visit to Japan is essential to ensure that the trainees will absorb all the skills offered during their stay in Japan.
In order to meet the demand, Esuhai provides Japanese language education and job training to the trainees before their visit to Japan, and these programs are highly valued by Japanese companies accepting the trainees. Esuhai has built a wide network among Japanese companies, including small and medium-sized enterprises, and has developed their business and curricula by reflecting the needs of those companies thoroughly.
JICA's assistance to this project will support Esuhai in enhancing the quality of its training programs and thereby contribute to the improvement of the quality of industrial human resources with practical experiences in Japan as well as their number. It is expected that this project will provide a business model for other industrial human resource training programs in Vietnam.
Additionally, for Japanese enterprises, especially small and medium-sized enterprises, to start their business in Vietnam, how they can find and employ skilled labors is one of critical issues. Esuhai, supported by JICA in this project, intends to further expand its business to introduce those experienced human resources to the Japanese companies which are starting business in Vietnam. Through expanding direct investment of Japanese enterprises, the project is expected to contribute to further economic development of Vietnam and enhance the economic relationship between the two countries.