ADB Earmarks $4.6 Billion for Vietnam's Strategic Projects Through 2029

Vietnam and the Asian Development Bank (ADB) are set to advance a series of strategic projects, with the bank identifying a pipeline of 27 initiatives worth approximately US$4.6 billion through 2029.

At a meeting on June 15, Deputy Finance Minister Trần Quốc Phương welcomed the ADB’s non-sovereign lending to Vietnam’s private sector. He affirmed that the Ministry of Finance would continue to coordinate closely with the ADB to facilitate such financing within Vietnam’s legal framework, aiming to enhance direct lending to private enterprises without government guarantees. Phương noted this approach aligns with the Politburo’s resolution on private sector development.

Speaking with Kim Dongil, an ADB Director representing a constituency that includes the Republic of Korea, Papua New Guinea, Sri Lanka, Taipei (China), Uzbekistan, Vanuatu and Việt Nam, Phương described the partnership between Vietnam and the ADB as “close and steadily expanding,” providing a crucial foundation for future cooperation. He added that an upcoming visit to Vietnam by the ADB President will be an important opportunity to deepen mutual understanding.

For his part, Kim lauded Vietnam’s economic achievements in recent years and stated that the ADB has increased its financial support for the country. He also proposed measures to improve internal procedures and accelerate the implementation of ADB-funded projects in Vietnam.

Kim referenced a recent meeting between the ADB President and General Secretary of the Communist Party of Việt Nam Central Committee and State President Tô Lâm, where both parties reaffirmed Vietnam’s development goals and committed to elevating their cooperation to a new level. Discussions between the two sides have centered on strengthening cooperation in budget support programmes, large-scale infrastructure projects, and initiatives to expand the ASEAN power grid.

The US$4.6 billion project pipeline identified through 2029 focuses on sectors that are national priorities, including infrastructure, energy, urban development, agriculture, and public sector management. Both Vietnam and the ADB have agreed to prioritize large-scale projects with broad spillover effects and a strong impact on economic growth, avoiding the dilution of resources.

According to Phương, Vietnam’s demand for development capital will remain substantial in the coming years, and the country is prepared to prioritize resources for key growth drivers and projects with strong capital absorption capacity.

Kim confirmed that the ADB will continue expanding its lending operations through 2030 and stands ready to support Vietnam in achieving its development objectives. He expressed confidence that, based on the agreed orientations, the partnership will grow even closer in the years ahead.