Vietnam seeks to tap Saudi Arabian fund for transport infrastructure, climate change projects

Prime Minister Pham Minh Chinh has urged Saudi Arabia to use its $620-billion Public Investment Fund (PIF) to invest in Vietnam’s prioritized sectors including transport infrastructure and climate change adaptation.

He made the request during a Thursday meeting (local time) with Yasir Al-Rumayyan, head of the PIF. The PM was in Saudi Arabia to attend the ASEAN-Gulf Cooperation Council Summit and visit the kingdom on October 18-20.

Chinh said Vietnam was focusing on railway routes, inter-regional and inter-urban-area roads, and climate change adaptation in the Mekong Delta.

Other priorities include digitalization, green economy, circular economy, innovation, renewable energy, high technology, industry, tourism and a Halal industry, Chinh said.

He proposed that both countries establish a joint investment fund to implement projects in the either nation, similar to the cooperation between Vietnam and Oman and between Saudi Arabia and other partners.

The prime minister also proposed that the PIF leadership and Vietnamese partners discuss details of updating legal frameworks and facilitating business investments.

Also Thursday, PM Chinh met with Al-Marshad, CEO of Saudi Fund for Development (SFD) and expressed appreciation of the fund’s support for Vietnam’s infrastructure development and improvement of livelihood in remote areas. He also urged the easing of loan terms for Vietnam.

Chinh said Vietnam would like to focus on large loans with simpler administrative procedures and more preferential policies, especially for railway, urban traffic, inter-regional expressway, digitalization for infrastructure, energy and climate change adaptation projects.

Also Thursday, Chinh attended the Vietnam-Saudi Arabia Business Forum in Riyadh. Welcoming investors from Saudi Arabia, he highlighted Vietnam’s strengths, including a highly-skilled and abundant workforce, firm commitment to protect investors’ benefits and rights, political stability and a fair and transparent business environment.

Vietnamese and Saudi Arabian businesses signed several agreements at the event, including memoranda of understanding between the Vietnam Chamber of Commerce and Industry (VCCI) and its Saudi Arabian counterpart; Zamil Steel Buildings Vietnam (ZSV) and Zamil Industrial Investment Company (ZIIC) on expanding ZSV’s operation in Vietnam; Vietnam’s tourism giant Vietravel and Saudi Arabia’s ITL World; and the Vietnamese Embassy and a local firm on trade promotion.