Vietnam calls for expanded flexible financing tools from ADB

Prime Minister Le Minh Hung has called on the Asian Development Bank (ADB) to expand flexible and preferential financing instruments better suited to Vietnam’s funding needs for development investment in the coming period.

At a Thursday bilateral meeting with ADB president Masato Kanda on the sidelines of the 48th ASEAN Summit in Cebu, the Philippines, Hung praised the bank’s contributions to Vietnam’s socio-economic development over the years.

The PM underscored the importance of aid and concessional loans for development investment in the new phase, while welcoming ADB’s early preparations for its 2027-2031 Country Partnership Strategy, which he said reflected the lender’s commitment to supporting Vietnam’s development goals.

He called on the bank to work closely with the Vietnamese government to further improve bilateral cooperation, saying both sides should focus on reviewing and removing bottlenecks in project implementation.

Beyond financial resources, Hung suggested ADB step up technical assistance and policy advisory support for Vietnam in developing new growth models, advancing green transition, strengthening supply chains, addressing climate change and supporting the private sector.

He also urged the lender to promote cooperation within the ADB-ASEAN framework and the Greater Mekong Subregion Program, particularly in energy and regional connectivity.

For his part, Kanda said ADB will continue to serve as a trusted partner for Vietnam in its new development era.

The president said the 2027-2031 Country Partnership Strategy will be closely aligned with Vietnam’s socio-economic development strategies and plans.

ADB will continue streamlining its processes and procedures while developing new financing instruments to better meet the funding needs of Vietnam and other member countries, he affirmed.

Vietnam has been a member of ADB since 1966. As of December 31, 2024, the lender had committed 459 public-sector loans, non-refundable aid, and technical assistance projects worth about $16.5 billion to Vietnam, according to ADB data.

Under its 2023-2026 Country Partnership Strategy for Vietnam, ADB set goals of promoting inclusive development, green growth and private-sector expansion to support Vietnam’s ambition of becoming an upper middle-income country by 2030 and a developed, high-income nation by 2045.

It plans to provide nearly $4 billion in financing for 23 projects in Vietnam during 2024-2026, including projects related to the green economy and sustainable development.

Its support for Vietnam covers improving regional connectivity, strengthening environmental management and green investment, promoting climate-resilient development, expanding access to education, healthcare and social services, and supporting ethnic minority communities.

The lender has also committed to mobilizing $2.1 billion under the Vietnamese government’s resource mobilization plan to support the Just Energy Transition Partnership.