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Apr 17, 2023 / 22:13

US-based infrastructure investment fund promises US$1 billion for Vietnam

Vietnam said the fund is useful for its digitalization and green transition which are key to the realization of the 2050 net zero commitment.

Investment fund Global Infrastructure Partners (GIP) may pour US$1 billion into Vietnam-based projects, the fund's Vice Chairman Jim Yong Kim said in Hanoi on April 17.

Vice Chairman of the Global Infrastructure Partners investment fund Jim Yong Kim (left) meets Prime Minister Pham Minh Chinh on April 17. Photo: Vietnam News Agency

The infrastructure investment fund making equity and selected debt investments will make further funding for the projects in transportation, energy, and digital transformation, Kim told a meeting with Prime Minister Pham Minh Chinh.

He expected that the Vietnamese Government and ministries will foster the partnership with the Global Infrastructure Partners fund, developing a proper strategy that details potential projects.

Jim added that he admires Vietnam’s achievements in socio-economic growth and that the successes have motivated him and his colleagues to foster the partnership with the nation.

In his part, Prime Minister Pham Minh Chinh said that the Government welcomes the fund to finance the projects in Vietnam’s transportation, digital transformation, green transition, climate change response, and realization of the 2050 net zero emission.

The government leader asked the GIP fund’s vice chairman and officials to develop a special mechanism for Vietnam to access capital resources on the principle of harmonized interests and shared risks.

“Vietnam is consistent with its policies in luring foreign capital flow, which focus on the development of infrastructures, regulations, and manpower,” he said.

PM Chinh wanted GIP fund to share experiences, information, and support for Vietnam in terms of finance, technology, manpower, and governance.

“Vietnam welcomes and will create the best conditions for GIP fund to succeed in the country.”

The Government will assign ministries and agencies to discuss cooperation deals with GIP funds upon the capability and demand of both sides, he added.

“Government agencies will accompany the fund to deploy joint projects to assure their operations and efficiency.”

Furthermore, the Prime Minister appreciated that Jim had done a great effort to foster the relationship between Vietnam and the World Bank as the former president of the latter.

He suggested that Jim continue to provide stronger assistance for Vietnam to access international funds and encourage high-quality investors to come to the country.

Jim Yong Kim is Vice Chairman and Partner at Global Infrastructure Partners, a fund that invests in infrastructure projects across several sectors around the world.

From July 2012 to February 2019, Kim served as the 12th President of the World Bank Group.