The four hospitals to receive the funds are the National Lung Hospital, the National Hospital for Tropical Diseases, the National Institute of Hematology and Blood Transfusion, all in Hanoi, and the Da Nang C Hospital in the central city of Da Nang.
The funds will be released over 18 months, beginning August.
"The Japanese government's support package to Vietnam is very valuable," acting Health Minister Nguyen Thanh Long said Monday at the signing ceremony of the exchange note between the two governments on the Covid-19 relief package.
The overall goal of the grant is to provide technical assistance to upgrade medical equipment to the four hospitals towards meeting the Covid-19 pandemic control and prevention needs, limiting Covid-19 related incidence and deaths, meeting the needs of medical examination and treatment and improving the quality of healthcare for Vietnamese people.
Japanese ambassador Yamada Takio said that when Japan faced a scarcity of masks this spring, the Vietnamese government had sent over 1.2 million masks. "That gift is very much appreciated by the Japanese people," he said.
After the signing ceremony, both delegations discussed medical issues related to the resumption of commercial flights between the two countries.
Vietnam has so far reported 1,049 Covid-19 cases with 853 recoveries and 35 fatalities.