China-based lender AIIB to allocate $5B for Vietnam rail projects

AIIB President Jin Liqun made the offer to Vietnamese Prime Minister Pham Minh Chinh Tuesday.

Chinh has earlier asked AIIB for consultancy and funding for Vietnam’s key projects such as the north-south high-speed rail, three rails connecting northern Vietnam with China, and urban rails in Hanoi and Ho Chi Minh City.

The PM told Liqun that Vietnam is targeting breakthroughs in transport infrastructure, healthcare, education, culture, sports, climate change response, digital infrastructure, green development, and economic circulation.

The country has high demand for development in all five means of transport: road, rail, aviation, maritime and inland waterway.

The PM wants investment in these sectors to create new value, reduce logistics costs, increase production and business, create jobs, and ensure sustainable development.

Liqun praised Vietnam for its fast economic growth rate amid global difficulties.

AIIB was established based on the initiative of Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation Summit in October 2013.

The bank has been operating since 2016 with 57 founding member countries, including Vietnam.

There are now 109 AIIB member countries, accounting for 81% of the global population and 65% of global GDP.

More than 270 projects from member countries have borrowed $53.5 billion from the bank to date.

AIIB has funded three projects worth $223 million in Vietnam in areas of solar power, hydropower and climate change response infrastructure.

The bank is interested into funding some Vietnam projects in the areas of renewable energy, transport infrastructure and water supply and drainage.