World Bank, ADB lend US$400 million for development projects in Vietnam

THE HANOI TIMES — The international financial institutions on April 16 agreed to provide US$400 million in loans for three development projects on climate response, infrastructure, and environment in Vietnam.

The World Bank will finance about VND5.4 trillion (US$231 million) of the total cost of VND7.2 trillion (US$279 million) for a water improvement project in the southern province of Binh Duong to reduce environmental pollution caused by domestic sewage in Binh Duong's three cities of Thuan An, Di An, and Tan Uyen. It consists of the construction of a new wastewater treatment plant in Tan Uyen, the extension of existing sewers, and the increase of treatment capacity in all three cities.

It will also improve water security for the downstream areas of the Saigon and Dong Nai rivers, especially for Ho Chi Minh City, which relies on the Dong Nai River for about 40% of its water supply.

Another project financed by the World Bank is the development of the Southern Waterway and Logistics Corridor with a total investment of VND3.9 trillion ($151 million). The World Bank is providing nearly VND2.5 trillion ($107 million).

This project aims to improve infrastructure, reduce congestion and accidents, and lower the cost of waterborne freight transportation in the Mekong Delta region by upgrading the East-West and North-South corridors.

As a result, the project will connect the Mekong Delta and Southeast region to Can Gio Port, contributing to poverty alleviation, socio-economic development, and ensuring national defense and security in these areas.

ADB will finance infrastructure development for ethnic minority communities in the central provinces of Quang Tri and Phu Yen to respond to climate change. The project has two separate components for the localities.

The Phu Yen component has a total investment of VND915 billion ($39.4 million), with ADB providing VND673 billion ($29 million) in loans and VND23.2 billion ($1 million) in non-repayable financing. Vietnam's counterpart funding is VND218 billion ($9.4 million).

The Quang Tri component involves a total investment of VND922 billion ($39.7 million), including VND700 billion ($30 million) in ADB loans and VND225.4 billion ($9.7 million) in counterpart funds.

"This event marks a new step forward in the trusted and effective partnership between Vietnam and its development partners, especially the World Bank and ADB. It is even more meaningful as it is being held during the ongoing P4G Summit in Hanoi, contributing to the success of the event," said Minister of Finance Nguyen Van Thang.

The World Bank and ADB are long-term strategic partners for Vietnam. They have played a key role in reducing poverty, improving infrastructure, strengthening governance, and promoting sustainable development.

As of April 2025, the World Bank has committed over 180 loans, grants, and technical assistance programs to Vietnam, totaling about $26 billion (including about $23 billion in signed loans) in basic infrastructure, transport, energy, education, health, water, environment, and agriculture.

Since 1993, ADB has provided over $18 billion in loans and grants to Vietnam. Its support has focused on transport infrastructure, clean energy, vocational training, rural development, and building resilience to climate change, particularly in disadvantaged regions and among ethnic minorities.

Apart from financial support, the World Bank and ADB have been important partners in providing technical assistance, project preparation, policy advice, and capacity building to the Government of Vietnam.

The signing ceremony took place as part of the activities on the sidelines of the Partnering for Green Growth and the Global Goals 2030 (P4G) Summit in Hanoi on April 16-17.