Germany Commits to Support Vietnam in Infrastructure Development

Minh Tam

11:52 05/11/2015

BizLIVE - Germany gives priority to supporting Vietnam and commits to continue providing official development assistance for Vietnam’s infrastructure projects, said Juergen Koppelin, a former member of the German parliament.

Germany Commits to Support Vietnam in Infrastructure Development

Speakers of the seminar “How to approach ODA fund and credit institution” on Thursday. (Photo: BizLIVE)

Mr. Koppelin, who was in charge of the Budget Committee of the German parliament, made the statement at a seminar entitled “How to approach ODA fund and credit institution” in Hanoi on Thursday. The event was held by the Vietnam’s Association of Foreign Invested Enterprises (VAFIE), VWSA and the German Water Partnership.  
Germany had provided EUR1.5 billion ($1.63 billion) in ODA for Vietnam as of 2014, focusing on vocational training, environment and climate change mitigation, and energy.
The politician shared that German ODA for Vietnam’s water and waste water treatment totaled EUR200 million ($217 million) between 2011 and 2013, but just a half of that amount has been disbursed so far.
Apart from finances, Germany has assisted Vietnam’s Ministry of Construction and other government agencies in treating waste water, he added.
Vietnam itself cannot solve problems related to waste water treatment and Germany will support Vietnam in this issue, Mr. Koppelin affirmed.
Fast urbanization in Vietnam has led to higher demand for developing infrastructure. The country’s target of connecting 80% of households to the drainage system is really challenging while up to 90% of waste water in Vietnam is charged directly to the environment.
Regarding the EU-Vietnam free trade agreement recently concluded, Mr. Koppelin expected the trade deal to be signed by the end of this year and come into effect in 2018. The pact will pave the way for large investment flows from the EU to Vietnam.