EU to mobilise over $1 billion for major infrastructure projects in Vietnam

EU to mobilise over $1 billion for major infrastructure projects in Vietnam

The European Union has launched a $46.4 million Sustainable Transport Development Fund to support large-scale infrastructure projects in Vietnam, with plans to mobilise additional financing from banks and private partners.

Photo: EU

At a business and investment forum on March 24, European Commissioner for International Partnerships Jozef Síkela highlighted the initiative's strategic focus. "Through this fund, the EU aims to provide financing and bring technology and expertise to support the development of large-scale infrastructure projects in Vietnam," he said.

The planned projects include the North–South high-speed railway, inland waterway systems, and urban transport networks. Given the capital-intensive nature of such developments, the EU expects to leverage concessional financing alongside private sector participation.

“We expect to mobilise significant additional capital from banks and European enterprises to ensure these projects are implemented effectively,” Síkela added.

Beyond the transport fund, the EU has committed more than $580 million to sustainable transport and clean energy initiatives in Vietnam. This includes a $232 million credit line from the European Investment Bank to Techcombank to support small and medium-sized enterprises investing in renewable energy, energy efficiency, and electric mobility.

Additional financing of almost $267 million will be directed to the Bac Ai pumped-storage hydropower project in Ninh Thuan, Vietnam’s first facility of its kind, developed by Vietnam Electricity (EVN). The project has a total investment of over $797 million, including a loan of approximately $88.2 million from the French Development Agency.

The EU has also previously supported major infrastructure developments such as the extension of Hanoi’s Metro Line 3 and is expected to contribute to the development of the Lien Chieu container port in Danang.

Deputy Prime Minister Ho Duc Phoc underscored the importance of continued cooperation, particularly in the context of Vietnam’s green transition agenda.

“Vietnam greatly values the EU’s support in sustainable development, especially in renewable energy and energy transition,” he said.

He noted Vietnam’s goal of achieving net-zero emissions by 2050 and called for further EU assistance in accessing sustainable finance, technology transfer, and innovation to develop highly connected infrastructure systems.

Vietnam has set a target of achieving net-zero emissions by 2050 and is seeking stronger international partnerships to realise this goal while ensuring energy security and environmental sustainability.

VIR