Vietnam, WB to promote projects worth $5-7 bln in next 3 years

Vietnam and the World Bank have agreed to quicken the implementation of existing projects and promote game-changing projects within the framework of the latter’s $5-7 billion loans for Vietnam in the next three years.

The agreement was reached between Prime Minister Pham Minh Chinh and WB President Ajay Banga in Dubai on December 2 on the sidelines of the 28th UN Climate Change Conference of the Parties (COP28).

Potential large-ticket projects include those in the Renewable Energy Accelerating Change Project (REACH), one million hectares of high-yield, low-carbon rice, Hanoi-Hoa Lac high-speed railway, climate change-resilient infrastructure development in the Mekong Delta, digital transformation, and green transformation.

The scale of the loans was first mentioned during a meeting of the two on the sidelines of ASEAN summits in Jakarta, Indonesia on September 7. Minister of Transport Nguyen Van Thang and WB country director for Vietnam Carolyn Turk in mid-October discussed potential projects for WB funding.

The Vietnamese prime minister thanked the WB for its effective cooperation with Vietnam, especially in policy consultation, financing, contributing to socioeconomic development projects and poverty reduction.

The WB is restructuring its operations globally, so Chinh proposed the bank establish a regional center with an office in Vietnam, promising the best possible conditions for operations.

In response, Banga welcomed Chinh’s proposal, and said he would ponder the idea.

The president affirmed that the WB considers Vietnam an important partner and will continue to accompany and support Vietnam in meeting its development goals.

He spoke highly of the Vietnamese government’s efforts aimed at green transformation, climate change response and sustainable development, especially in implementing the one-million-hectare low-carbon rice project.

Banga proposed Vietnam join the global carbon credit market and affirmed the WB’s willingness to accompany and support the country in this process.