The Asian Infrastructure Investment Bank (AIIB) will invest $5 billion to support Vietnam in its shift towards a sustainable and green economy, AIIB’s President Jin Liqun announced during a recent visit to Vietnam.
The investment does not have a defined timeframe and depends on the quality and feasibility of the proposed projects, said Jin Liqun.
AIIB has already approved three notable projects in Vietnam worth a combined $223 million as part of the plan.
The first is in Southeast Asia Commercial Joint Stock Bank (SeABank)—$75 million financing contract aimed at supporting green and blue bonds. This marks the first-ever blue bond issued from Vietnam and is also AIIB’s first investment in a blue bond.
The second project is Dakdrinh Hydropower Plant in Central Vietnam. This project has received a $47.5 million investment from AIIB. The hydropower plant highlights the bank’s commitment to renewable energy and aims to enhance the country’s energy infrastructure.
The third is a $100 million investment in Viet Nam Prosperity Joint Stock Commercial Bank (VP Bank) under the COVID-19 Response Facility. This non-sovereign-backed loan is designed to expand VP Bank’s working capital and trade-related lending programmes, particularly benefiting small and medium enterprises (SMEs) affected by the pandemic.
During his visit, President Jin Liqun stressed the critical areas where AIIB will channel its resources, including COVID-19 response, solar energy, hydropower, and infrastructure to combat climate change. The bank also expressed interest in financing projects in renewable energy, transportation infrastructure, and water supply and drainage systems.
“Vietnam has achieved tremendous economic and social development progress over the last two decades. Continued investment in basic infrastructure like energy, transportation, and green energy is crucial for sustaining this growth,” said Jin Liqun.
He emphasised that infrastructure investment is essential for Vietnam to maintain its strong economic performance and improve its people’s living standards.
“We are grateful for Vietnam’s active contribution to the Bank’s establishment and development since the very beginning. Vietnam has great potential for economic growth, and we are dedicated to enhancing our collaboration with the country to further support its sustainable development goals,” he added.
President Jin emphasised the need for Vietnam to tackle two major constraints: energy and transportation. With the rapid growth in economic activities, existing infrastructure is experiencing increased pressure. The AIIB aims to provide sustainable solutions by investing in projects that promote electrification and improve both urban and rural transportation systems.
“It’s no longer an option to build coal-fired power plants. We should also be cautious about gas-fired plants. Developing renewable energy to improve electricity supply and converting it into efficient electrification is crucial,” stated Jin.
AIIB is a multilateral development bank established in 2016 to finance sustainable infrastructure. The bank, which has its headquarters in China, has approved 274 projects amounting to over $53 billion across 37 member countries, focusing on sectors like energy, transportation, water, and urban development.