Vietnam Seeks to Accelerate ADB-backed Projects: Minister
In a meeting on February 22, Finance Minister Ho Duc Phoc engaged with Mr. Shantanu Chakraborty, the country director of the Asian Development Bank (ADB) in Vietnam, urging ADB to work together to speed up the implementation of official development assistance (ODA) projects in the Southeast Asian country, local media reported.
ADB, a key supporter of Vietnam’s infrastructure projects, is funding several projects, such as the basic infrastructure for the comprehensive development of Nghe An, Ha Tinh, Quang Binh, and Quang Tri central provinces, the Metro Line No. 3, and a project connecting the center of the Mekong Delta region to the National Highway 91.
Currently, the Ministry of Finance is working with competent agencies to amend the Law on Bidding and relevant documents to boost projects’ progress and efficiency.
Mr. Shantanu Chakraborty acknowledged Vietnam’s progress in ADB-funded projects and expressed optimism about ADB resuming lending to the Vietnamese government. ADB’s involvement is crucial as Vietnam experiences a decline in ODA loans from international organizations. Vietnam’s public debt fell from 43.1% of GDP in 2021 to 37% now.
ADB hoped that required documents for projects, especially those on climate change response in the Mekong Delta, would be completed soon for the signing of lending agreements, he added.
Looking ahead to 2024-2026, ADB plans 23 projects in Vietnam, totaling $4 billion. However, the successful mobilization of funds hinges on the expeditious completion of domestic investment procedures. By February, ADB signed 190 lending and grant agreements with Vietnam with a combined total of about $13.3 billion in transport, health, education, water and urban infrastructure, agriculture, natural resources, and energy.