In some contexts, that's true. In most, people can and do distinguish between ao and midori (and for that matter, sora-iro, kon, mizu-iro, and various other shades of these two colors). If you said "sora wa midori de aru," literally "the sky is green," nobody would nod their head yes.
I did not used Japanese words, I used English words. And unless you are strongly colorblind, they are diferent looking no matter what your maternal language. So no, it is not true that they are same, that is frankly incredibly bullshit statement.
For that matter, light green and dark green are shades too, but they are not the same color and are not used intercheably.