Signing loan and aid agreements worth nearly 400 million USD for 3 projects

The total value of loans and grants signed between Vietnam and the World Bank (WB) and the Asian Development Bank (ADB) is nearly $400 million for various projects.

Prime Minister Pham Minh Chinh witnessed the signing ceremony of loan and grant agreements between Vietnam and the Asian Development Bank (ADB) for the Project on Developing Infrastructure for Ethnic Minorities to Respond to Climate Change in Phu Yen and Quang Tri Provinces, financed by ADB loans. (Photo: Duong Giang/VNA)

On April 16th, at the National Convention Center, a signing ceremony took place for loan and grant agreements between Vietnam and the World Bank (WB) and the Asian Development Bank (ADB) for the following projects: the Binh Duong Province Water Environment Improvement Project (WB-funded by IBRD); the Southern Region Waterway and Logistics Corridor Development Project (WB-funded by IDA); and the Phu Yen and Quang Tri Provinces Infrastructure Development Project for Ethnic Minorities to Respond to Climate Change (ADB-funded by ADB).

Witnessing the signing ceremony were Prime Minister Pham Minh Chinh, Deputy Prime Minister Bui Thanh Son, Minister of Finance Nguyen Van Thang, ADB Vice President Scott Morris, ADB Country Director for Vietnam Shantanu Chakraborty, World Bank Country Director for Vietnam, Cambodia, and Laos Mariam J. Sherman, representatives from the Office of the President, the Government Office, the Ministry of Foreign Affairs, the Ministry of Finance, the Ministry of Justice, the Ministry of Construction, the People's Committees of Binh Duong, Quang Tri, and Phu Yen provinces, and representatives of the project investors.

The total value of loans and grants signed for the projects is nearly $400 million.

Specifically, the Binh Duong Province Water Environment Improvement Project has a total investment of VND 7,211 billion; of which, the World Bank loan (IBRD, part of the World Bank's low-interest loan group for poverty reduction in middle-income countries or poorer countries with creditworthiness) is VND 5,354 billion (equivalent to USD 230.76 million). The project's managing agency is the People's Committee of Binh Duong Province.

The project aims to improve environmental pollution caused by urban wastewater in areas of Binh Duong province, including the three cities of Thuan An, Di An, and Tan Uyen.

The project involves investing in the construction of a new urban wastewater collection and treatment system for Tan Uyen city, expanding the collection network and increasing the capacity of wastewater treatment plants for Thuan An, Di An, and Tan Uyen cities; improving wastewater management capacity for Binh Duong province; and strengthening water security for downstream areas of the Saigon and Dong Nai rivers, especially Ho Chi Minh City, which receives approximately 40% of its water supply from the Dong Nai River.

The Southern Region Waterway and Logistics Corridor Development Project has a total investment of VND 3,901.602 billion; of which the WB loan (IDA, a highly concessional loan from the International Development Association of the World Bank Group) is VND 2,493.731 billion (81.2 million SDR - equivalent to USD 107.67 million). The managing agency of the Project is the Ministry of Construction (formerly the Ministry of Transport).

Mobilizing IDA funding will help the Project achieve its goals of improving infrastructure, reducing congestion and accidents, and lowering the cost of transporting goods by waterway through the renovation and upgrading of the East-West transport corridor connecting the Mekong Delta region and the renovation of the North-South transport corridor connecting the Southeast region with the Cai Mep-Thi Vai port cluster.

The planned Can Gio International Transshipment Port is located at the mouth of the Thi Vai River (opposite the Cai Mep Thi Vai Port Complex). Therefore, investing in this project will also help connect the Mekong Delta and the Southeast region with the Can Gio International Transshipment Port.

The project will contribute to poverty reduction, socio-economic development, and national defense and security in localities in the Mekong Delta and Southeast regions.

The project on developing infrastructure for ethnic minorities to respond to climate change in Phu Yen and Quang Tri provinces comprises two components: the Phu Yen component and the Quang Tri component. The Phu Yen component has a total investment of VND 914.776 billion (equivalent to USD 39.413 million); of which VND 673.09 billion (equivalent to USD 29 million) is from ADB's OCR loan, VND 23.21 billion (equivalent to USD 1 million) is from grant aid, and VND 218.476 billion (equivalent to USD 9.413 million) is from counterpart funding. The managing agency of the project is the People's Committee of Phu Yen province.

The Quang Tri province component project has a total investment of VND 921.698 billion (equivalent to USD 39.711 million), of which: ADB's OCR loan is VND 696.298 billion (equivalent to USD 30 million), and counterpart funding is VND 225.4 billion (equivalent to USD 9.711 million). The managing agency of the Project is the People's Committee of Quang Tri province.

The World Bank (WB) and the Asian Development Bank (ADB) are two strategic development partners that have accompanied Vietnam for decades, playing a crucial role in poverty reduction, infrastructure improvement, governance enhancement, and sustainable development promotion.

The World Bank is one of the largest multilateral partners providing ODA and concessional loans to Vietnam (meeting approximately 35% of the Government's foreign loan mobilization needs). As of April 2025, the World Bank had committed more than 180 loans, grants, and technical assistance to Vietnam, with a total value of approximately US$26 billion (of which the total value of signed loans was approximately US$23 billion).

WB loan funds are prioritized for investment in essential infrastructure programs and projects, including transportation, energy, education, health, water, environment, and agriculture.

The ADB has also provided Vietnam with a total of over US$18 billion in loans and grants since the start of cooperation in 1993. ADB's programs and projects in Vietnam focus on developing transport infrastructure, clean energy, vocational education, rural development, and enhancing climate change adaptation capacity, particularly in disadvantaged areas and ethnic minority regions.

In addition to financial support, the World Bank and the Asian Development Bank have always been important partners supporting the Vietnamese Government by providing non-refundable technical assistance in project preparation, policy advice, and capacity building in governance and administration.

The signing ceremony took place within the framework of activities on the sidelines of the Partnership for Green Growth and Global Goals 2030 Summit (P4G Summit) in Vietnam, contributing to enhancing Vietnam's prestige on the international stage and affirming the Government's strong commitment to achieving sustainable development goals.

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