Vietnam Proposes Five-Year Infrastructure Investment Pipeline with AIIB

On November 10, Vietnam’s Permanent Deputy Prime Minister Phạm Gia Túc met a delegation from the Asian Infrastructure Investment Bank (AIIB) and proposed that the two sides promptly draw up a long-term investment pipeline for the next five years, identifying priority projects that could be implemented soon. He said Vietnam has substantial medium- and long-term infrastructure financing needs and hopes to expand cooperation with the AIIB.

Vietnam’s Permanent Deputy Prime Minister Phạm Gia Túc speaks during his meeting with the AIIB delegation.（VietVance）

Vietnam’s proposed transport projects include Hanoi’s urban railways, the Lào Cai–Hanoi–Hải Phòng railway, the Hanoi–Đồng Đăng railway, the North–South high-speed railway and port infrastructure. In energy, Vietnam hopes the AIIB will consider offshore wind, solar power, energy storage, power transmission and energy transition projects, while also supporting digital infrastructure and data centers.

AIIB Vice President and Corporate Secretary Sherard Cowper-Coles said the bank has undertaken several projects with Vietnam’s private sector, but its involvement in public-sector projects remains limited. The AIIB is interested in expanding cooperation on Hanoi’s urban railways, digital infrastructure in Đà Nẵng and energy. The bank also plans to double its lending volume over the next five years.

AIIB Vice President and Corporate Secretary Sherard Cowper-Coles outlines the bank’s plan to expand lending over the next five years.（VietVance）

Phạm Gia Túc cited a proposed $300 million AIIB loan for a policy-based financing program on green growth and a just energy transition, co-financed by German development bank KfW. He said that, if implemented, it would be the AIIB’s first government-guaranteed financing project in Vietnam. Vietnam will coordinate among the Ministry of Finance, the State Bank of Vietnam, the Ministry of Construction and other agencies to advance project preparation and implementation.

Phạm Gia Túc also proposed that the AIIB study credit arrangements for private businesses, expand lending without government guarantees and provide long-term financing for green logistics, renewable energy and urban infrastructure projects. He said reliance on short-term commercial credit would make large infrastructure projects harder to implement, and urged the AIIB to consider reasonable interest rates, suitable loan terms and risk-sharing arrangements.

Source: VietVance