Việt Nam strengthens ties with AIIB for strategic infrastructure development

Prime Minister Phạm Minh Chính welcomes President of Asian Infrastructure Investment Bank Jin Liqun. VNA/VNS Photo Dương Giang

HÀ NỘI – Prime Minister Phạm Minh Chính underscored Việt Nam’s commitment to strengthening its cooperative relationship with the Asian Infrastructure Investment Bank (AIIB) during a reception in Hà Nội on Tuesday for AIIB President Jin Liqun.

At the reception, PM Chính said Việt Nam is pursuing three strategic breakthroughs, one of which is strategic infrastructure in such fields as transport, healthcare, education, culture, sports, climate change adaptation, digital infrastructure, green infrastructure, and circular economy.

Việt Nam has significant needs across all five transport modes, including road, rail, aviation, maritime and inland waterways. However, the Government will prioritise investments that create new development spaces and added value, he said. The aim is to reduce logistics costs, promote production and trade, generate livelihoods for residents, and foster sustainable development.

He proposed that the AIIB provide Việt Nam with advice support and concessional loans for large-scale, high-efficiency infrastructure projects that have the potential to reshape the nation, including the North-South hi-speed railway, three northern railway lines connecting with China and extending to Europe and Central Asia, and urban railway lines in Hà Nội and HCM City.

The AIIB President praised Việt Nam’s remarkable economic achievements and growth, especially in the face of global economic challenges. He announced that AIIB will allocate approximately US$5 billion at preferential interest rates to support Việt Nam.

He fully agreed with the cooperation directions outlined by PM Chính, with a particular focus on large-scale projects.

Established in 2016, AIIB is a multilateral development bank that began with 57 founding member countries, including Việt Nam. Its membership has since expanded to 109, representing 81 per cent of the global population and 65 per cent of global GDP. To date, AIIB has approved 274 projects worth over $53.5 billion for its member countries.

In Việt Nam, AIIB has focused on private sector projects totaling $223 million, addressing areas such as COVID-19 response, solar energy, hydropower, and climate change-related infrastructure. The bank is now expressing interest in financing some projects in renewable energy, transportation infrastructure, and water supply and drainage in Việt Nam. – VNS