Importance of Preferential Loan Capital for Investment and Development

Importance of Preferential Loan Capital for Investment and Development 22/02/2024 04:21:00 147

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On the afternoon of February 22, Minister of Finance Ho Duc Phoc held a working session with Mr. Shantanu Chakraborty, who is the Country Director of the Asian Development Bank (ADB) in Vietnam. The meeting was held at the Ministry of Finance's headquarters and was attended by representatives of several functional units under the Ministry, as well as experts from ADB.

On the afternoon of February 22, Minister of Finance Ho Duc Phoc held a working session with Mr. Shantanu Chakraborty, who is the Country Director of the Asian Development Bank (ADB) in Vietnam. The meeting was held at the Ministry of Finance's headquarters and was attended by representatives of several functional units under the Ministry, as well as experts from ADB.

Minister Ho Duc Phoc spoke at the working session

During the reception, the Minister expressed his appreciation for ADB's long-standing relationship and contributions to Vietnam, particularly to the Ministry of Finance for almost three decades. He also conveyed his delight at the upcoming visit of the President of ADB to Vietnam from March 12-14, 2024, to mark the 30th anniversary of cooperation between Vietnam and ADB. The Minister emphasized ADB's crucial role in supporting the Government of Vietnam in implementing projects and infrastructure by providing policy advice and financial resources.

The Minister shared that Vietnam's ODA loans from international organizations such as WB, JICA, KOICA, etc. have decreased from 2021 until now. Vietnam's public debt, which was 43.1% of GDP in 2021, has now decreased to about 37% of GDP, including foreign debt accounting for approximately 34% of GDP. The Minister emphasized that ADB capital, specifically, and preferential loans, in general, are essential resources to focus on development investment.

Mr. Shantanu Chakraborty, the Country Director of ADB in Vietnam, spoke.

The Minister discussed the need for cooperation between both parties to resolve some issues between donor regulations and Vietnamese regulations. The Ministry of Finance is actively working with Vietnamese Government agencies to propose changes to the Bidding Law, Decree No. 114/2021/ND-CP, and related documents to accelerate project investment and implementation. During the meeting, Minister Ho Duc Phoc provided updates on projects that ADB is supporting and implementing in Vietnam, such as the Basic Infrastructure Project for Comprehensive Development in Nghe An, Ha Tinh, Quang Binh, Quang Tri provinces, Urban Railway Line No. 3 Project, and Project Connecting the central area of the Mekong Delta - the route connecting National Highway 91 and the Long Xuyen City bypass. The Ministry of Finance is closely working with relevant agencies to ensure the timely completion of these projects. The Ministry of Finance hopes that ADB will continue to coordinate with them for the early implementation of projects in the List of ODA loan mobilization projects and preferential foreign loans for the Mekong Delta region.

Minister Ho Duc Phoc gave a souvenir to Mr. Shantanu Chakraborty at the end of the working session

Mr. Shantanu Chakraborty, the Country Director of ADB, expressed his pleasure at the progress of various projects in Vietnam which are currently being funded by ADB. He expressed his hope that ADB will soon resume lending to the Vietnamese government. ADB also considers the project in the List of Projects for mobilizing ODA loans and foreign preferential loans for the Mekong Delta region as a priority in Vietnam. In case any issues arise during the collaboration between the two parties, ADB is committed to working closely with the Vietnamese government and the Ministry of Finance to find appropriate solutions.

Translator: Thúy Nga

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