Vietnam to borrow $2.53B from foreign partners for Mekong Delta development

Prime Minister Pham Minh Chinh said at a meeting in the delta’s capital city Can Tho Saturday that Vietnam can afford to take more ODA loans as its public debt and foreign debt has been well controlled.

Those loans can be used to boost infrastructure development in the Mekong Delta, he said.

Prime Minister Pham Minh Chinh speaks at a meeting in Can Tho, July 8, 2023. Photo by VGP

The 16 projects have been proposed by the Ministry of Transport, the Ministry of Agriculture and Rural Development, Can Tho and 12 Mekong Delta provinces.

Among the projects is a 415-km coastal road that connect seven provinces Tien Giang, Ben Tre, Tra Vinh, Soc Trang, Bac Lieu, Ca Mau and Kien Giang, at a cost of nearly VND43 trillion ($1.8 billion).

Others include highway upgrades, reservoir and irrigation projects.

The six foreign partners involved are the Asian Development Bank, the French Development Agency, the KfW, Japan International Cooperation Agency, the Export-Import Bank of Korea, and the World Bank.

PM Chinh said the Mekong Delta holds a strategic role in the nation’s growth. Infrastructure development in the region will create space for new urban, industrial zones, boost growth and improve the quality of local human resources.

The delta, the country’s rice basket and major supplier of its seafood export, now has 171 km of expressways, according to the Transport Ministry.

Another eight projects with a total length of 463 km are being developed and scheduled to complete by 2026.