During the Shanghai Cooperation Organisation (SCO) summit in Tianjin, Prime Minister Pham Minh Chinh met with Jin Liqun, president of the Asian Infrastructure Investment Bank (AIIB).
The prime minister asked the AIIB to support two key projects: the Lao Cai - Hanoi - Hai Phong railway, connecting Vietnam with China, and a power grid linking Vietnam with ASEAN.
The National Assembly approved the Lao Cai - Hanoi - Hai Phong railway project in February, with a total investment of over 203,000 trillion VND (8.37 billion USD). The 391 km main line, using 1,435 mm gauge tracks, will include 27.9 km of branch lines, passing through 9 provinces and cities. Designed for both passenger and freight transport, the railway will operate at speeds of 80-160 km per hour, depending on the section. The project is expected to be completed by 2030.
Vietnam currently lacks a direct power grid connection with other ASEAN nations, having only transmission lines with neighboring countries like Laos, Cambodia, and China. The ASEAN power grid is a long-term initiative to connect the electricity networks of countries within the region. At the 44th-45th ASEAN Summit last year, Prime Minister Pham Minh Chinh expressed Vietnam's support for establishing an ASEAN electricity market connected via an undersea cable transmission system.
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Prime Minister Pham Minh Chinh meets with Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB), on 31/8, in China. Photo: VGP |
Prime Minister Pham Minh Chinh meets with Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB), on 31/8, in China. Photo: VGP
The prime minister also requested continued direct AIIB funding for key infrastructure projects, facilitating access to concessional loans with favorable interest rates and grace periods for Vietnamese businesses (both state-owned and private).
Vietnam aims for 8.3-8.5% growth this year and double-digit growth in the coming years, requiring substantial capital. Public debt remains within a safe range, at 34% of GDP at the end of 2024. Vietnam's priority projects and programs align with the AIIB's focus.
Established in 2016 with 57 founding members, including Vietnam, the AIIB is a multilateral development bank. As of 9/2024, the bank has 110 member countries.
In Vietnam, the AIIB has primarily financed private sector projects in solar energy, hydropower, and climate change-resilient infrastructure, totaling 223 million USD.
AIIB President Jin Liqun commended Vietnam's progress in raising income levels compared to other developing countries. He expressed confidence in Vietnam achieving its double-digit growth target through a combination of sound macroeconomic policies and effective mobilization of external resources.
Agreeing with the Prime Minister's proposals, the AIIB president affirmed the bank's commitment to supporting Vietnam in mobilizing capital for key infrastructure projects, including renewable energy and climate change adaptation.
Phuong Dung
