Vietnam and AIIB discuss expanding financial cooperation

Vietnam and AIIB discuss expanding financial cooperation

On November 4, at the Ministry of Finance, Deputy Minister Tran Quoc Phuong held a meeting with a delegation from the Asian Infrastructure Investment Bank, led by Kim-See Lim, AIIB’s investment director, to discuss expanding financial cooperation and infrastructure development.

Photo: Duc Minh

Deputy Minister Phuong expressed appreciation for the AIIB's interest, cooperation, and financial support commitments to Vietnam in recent years.

"Although AIIB is a relatively new development partner for Vietnam, the two sides have quickly established close working relations and achieve positive results in exchanging information and financial cooperation," he said.

The deputy minister also spoke highly of AIIB’s operating model and flexible approach towards its member countries, particularly regarding financing terms, loan currencies, and implementation procedures.

He added that considerable potential remained for cooperation between Vietnam and AIIB. The two sides are still in the process of gaining a deeper understanding of each other’s operating mechanisms, while several Vietnamese authorities at all levels have yet to obtain comprehensive information about AIIB’s financial instruments and cooperation conditions.

Against this backdrop, he emphasised the need to define clearer cooperation orientations for the coming period, strengthen information exchange, and establish coordination mechanisms aligned with Vietnam’s development needs.

He added that Vietnam is continuing to improve its legal framework governing investment, public debt management, and the management of development assistance funds. These policy adjustments will provide a basis for relevant agencies to study and identify appropriate cooperation arrangements with development partners, including AIIB.

Regarding the mobilisation and utilisation of foreign loans, Deputy Minister Phuong said, "Vietnam had made considerable efforts to simplify investment procedures. However, the implementation of programmes financed by international partners still needs to comply with both domestic legal regulations and financiers’ requirements."

Therefore, stronger coordination and information sharing from the project preparation stage are essential to minimise procedural obstacles, improve cooperation efficiency, and ensure the timely implementation of agreed activities.

Providing an update on the progress of the $300 million 2026 budget support loan for green growth and a just energy transition, Deputy Minister Phuong said that this was the first loan between Vietnam and AIIB, making it an important milestone in establishing and advancing financial cooperation between the two sides.

The MoF has submitted the proposal to the prime minister for approval to proceed with the negotiation procedures towards signing the loan agreement. The Vietnamese side is confident that it can meet the target of completing negotiations by mid-November, enabling the proposal to be submitted to AIIB’s Board of Directors in December. MoF officials stand ready to work closely with AIIB throughout the process, he said.

“We hope AIIB will give this loan high priority and attention, considering it a key area of cooperation in 2026. The MoF will continue working with AIIB and relevant agencies to accelerate tasks falling under Vietnam’s responsibility, while requesting AIIB’s maximum support to help both sides achieve their shared objectives,” the deputy minister said.

Photo: Duc Minh

At the meeting, Kim-See Lim, AIIB’s investment director, expressed her pleasure at returning to Vietnam in her new capacity and spoke highly of the cooperation between AIIB, the Vietnamese government, and the MoF.

She described Vietnam as a partner with considerable cooperation potential, particularly as the country accelerates infrastructure investment, promotes economic growth, and shifts towards a more sustainable development model.

“I would like to see more tangible actions rather than just discussions. The fact that both sides have already undertaken concrete cooperation activities provides a solid foundation for further deepening our partnership,” Lim said.

The AIIB director said the bank wished to strengthen its cooperation with Vietnam through a long-term, proactive approach closely aligned with the country’s development priorities. Accordingly, the two sides could work together to develop a medium-term cooperation framework, identify priority sectors and resource mobilisation needs in advance, and actively arrange personnel, experts, and other necessary resources.

Regarding the $300 million loan, Lim expressed her expectation that the signing ceremony for the first budget support loan would take place by the end of 2026, paving the way for further cooperation projects in the future.

Concluding the meeting, Deputy Minister Phuong expressed his expectation that cooperation between Vietnam and AIIB would continue to expand on the basis of initial achievements, towards establishing stable, long-term, and effective coordination.

VIR