PM urges EIB to sign next generation ODA agreement with Vietnam

The Hanoi Times — Vietnam urged the European Investment Bank (EIB) to sign a next-generation ODA agreement with larger grants, lower interest rates, simpler procedures, and more flexible conditions.

"The agreement provides financing for the public sector and greatly supports them," Prime Minister Pham Minh Chinh said at a meeting on March 12 with EIB Vice-President Nicola Beer and senior executives of Germany's Brosnan Norden.

At the meeting, Prime Minister Chinh expressed his appreciation for the EIB's contributions to Vietnam's socio-economic development, particularly in infrastructure development. According to him, as a developing country with a transition economy focusing on innovation, research, technology, and digital transformation, Vietnam needs a significant amount of capital. Its growth is expected to reach 8% in 2025 and double digits in the coming years.

Emphasizing the principle of "harmonized benefits and shared risks," the prime minister urged the EIB to accelerate ongoing projects and expand loans to help Vietnam diversify financial resources. 

He asked the bank to provide preferential financing packages for energy transition projects, large-scale infrastructure development - including transport, health and education - and the establishment of international financial centers in Vietnam.

He encouraged the EIB to share its expertise in managing and operating a sustainable financial system, transferring advanced technologies, and assisting in capacity building and management training.

PM Chinh reaffirmed Vietnam's strong commitment to green and energy transition and invited the EIB to share its experience in mobilizing green finance, designing preferential mechanisms, and developing innovative financial solutions for renewable energy, emissions reduction, and climate adaptation.

He underlined Vietnam's commitment to action, stating that "what is said must be done, what is committed must be fulfilled, and what is implemented must produce concrete results."

EIB Vice-President Nicola Beer said that the EIB, as one of the world's leading banks, has been working with Vietnam since 1997 to support infrastructure, environmental and energy development. This includes urban railway projects in Hanoi and Ho Chi Minh City.

According to the European Union (EU), the EIB, the EU's financing arm, has provided Vietnam EUR561 million (US$610.5 million) in financing for sustainable transport, renewable energy and climate action since 1997. 

With access to funds from European countries and financial institutions, the EIB stands ready to support Vietnam through concrete projects in line with the country's targets of 8% growth in 2025 and double-digit increase in the following years.

The vice president also expressed the EIB's willingness to help Vietnam develop financial hubs, transfer advanced technology, and provide training in financial management. She encouraged further administrative reforms to facilitate the rapid disbursement of EIB funds for Vietnam's development projects.

On this occasion, the EIB and the State Bank of Vietnam (SBV) strengthened cooperation on sustainable finance through the EIB’s Greening Financial Systems program, supporting SBV in climate risk management, green finance expansion, investment attraction, and policy development.