The Asian Development Bank has announced it will maintain lending to Vietnam at around $1 billion per year in the coming four years and stands ready to scale up its assistance to the Southeast Asian country should additional resources be requested.
The announcement was made at the launch of the Vietnam Country Partnership Strategy for the 2016-2020 period, after the country reached the lower-middle income status in 2010.
In addition, the bank will provide technical assistance worth $5 million-$7 million annually while teaming up with development partners and climate funds to co-finance $1.4 billion.
Following impressive economic gains, Vietnam is starting to face new and more complex challenges.
“Growth is creating environmental damage and the country is highly exposed to climate change. Previously rapid growth in the working age population is starting to fall and pockets of poverty still remain, particularly in remote and rural regions,” said ADB
“To help the government address these challenges, ADB will support investments to achieve three key outcomes,” said ADB Country Director for Vietnam Eric Sidgwick.
These pillars include promoting job creation and competitiveness, increasing the inclusiveness of infrastructure and service delivery, and improving environmental sustainability and climate change responses, he noted.
The bank will lend Vietnam some $2.1 billion for its transport network, over $1 billion for development of sustainable energy and $1 billion for livable/green cities by 2020.
Between 2011 and 2015, ADB gave Vietnam $5.3 billion in loans, and $240 million in grants and technical assistance. The funding went mainly to transport, water and urban, energy, and public sector management projects.
At a press meeting in Hanoi on June 17, ADB President Takehiko Nakao said ADB lends Vietnam between $800 million and $1 billion annually. The Southeast Asian country, meanwhile, repays $400 million. As a result, Vietnam receives a net $400 million-$600 million per year.