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May 28, 2024 / 13:16

World Bank ready to lend Vietnam US$11 billion in 5 years

Funds should be allocated to major transformative projects to maximize the efficiency of the investment and streamline procedures.

The World Bank has proposed lending Vietnam US$11 billion over the next five years for major infrastructure projects such as urban railways, energy initiatives, and carbon credits.

 Prime Minister Pham Minh Chinh and WB Regional Vice President for East Asia and Pacific Manuela V.Ferro. Photo: Nhat Bac/VGP
This was discussed during a meeting between Prime Minister Pham Minh Chinh and Manuela V. Ferro, World Bank Regional Vice President for East Asia and Pacific, on May 27.
In recent years, the World Bank (WB) has financed some $25 billion in socio-economic development projects in Vietnam.

Prime Minister Pham Minh Chinh expressed the wish that this loan should come with preferential interest rates. "This is aimed at promoting sustainable growth and enhancing the economy's competitiveness," he stated.

He proposed that the funds be allocated to major transformative projects like the Hanoi urban railway, the Van Cao - Lang Hoa Lac section, the Ho Chi Minh City - Can Tho railway, clean energy projects, and the one million hectares of high-quality rice project.

According to Chinh, concentrating funds on a few major transformative projects will maximize the efficiency of the investment and streamline procedures.

The Prime Minister also thanked the WB for supporting Vietnam in becoming the first country in the East Asia-Pacific region to receive emissions-based payments from the WB's Forest Carbon Partnership Facility (FCPF). He expressed hope that the WB will continue to support Vietnam in participating in the global carbon credit market and effectively implementing Vietnam’s Renewable Energy Accelerating Change (REACH) project.

Prime Minister Chinh stated that the Government has been working diligently with various ministries to clarify policy differences with the WB and propose solutions to facilitate the preparation, negotiation, and implementation of projects. The government also reviews institutional policies and procedures regarding Official Development Assistance (ODA) and concessional foreign loans.

Recently, Vietnam has made significant strides in improving legal and policy frameworks and addressing issues through new laws, including the Land Law, said Chinh.

Additionally, land clearance for projects has been expedited through innovative approaches, involving the entire political system at the local level and encouraging public participation, thereby ensuring legitimate rights and interests of the people based on harmonious benefits and shared risks among the state, businesses, and citizens.

WB Vice President Manuela V. Ferro expressed strong confidence in future cooperation opportunities with Vietnam and other regional countries, highlighting the tangible benefits for all parties involved. She praised Vietnam's efforts in implementing collaborative projects, particularly the Task Force led by Deputy Prime Minister Tran Luu Quang.

Ferro noted Vietnam's impressive progress in development, which she attributed to the determination and efforts of its people. The WB is committed to continuing its effective cooperation with Vietnam, aiming to support the country in achieving developed nation status by 2045. "Vietnam's success is also the WB's success," she said, emphasizing the importance of enhancing connections between Vietnam and other regional countries in an increasingly complex world.

Echoing the Prime Minister's views, Ferro expressed WB's eagerness to receive official proposals from Vietnamese agencies soon to accelerate the negotiation, signing, and implementation of specific projects. She added that the WB President also looks forward to visiting Vietnam at an appropriate time.

During the meeting, both sides agreed to collaborate on developing the Vietnam-WB Country Partnership Framework for 2025-2029. This framework will outline the direction of future cooperation, with a focus on mobilizing and supporting resources for Vietnam.

The two aim to finalize the content of the Country Partnership Framework for approval by both parties' leaders.