Hanoi (VNA) - The Asian Infrastructure Investment Bank (AIIB) is always ready to support Vietnam and has prepared a 5-billion-USD loan to start with supporting the counrty’s infrastructure development, and will further mobilise private sector financing and resources to support sustainable infrastructure development in the country, AIIB President Jin Liqun told the Vietnam News Agency on July 17.

Jin commended the progress Vietnam has recorded in its socio-economic development over the recent years, particularly its impressive economic growth rate. However, he also pointed out that to sustain strong growth, Vietnam needs to continue improving living standards and investing in basic infrastructure, energy and green energy.

Identifying energy and transport as the two remaining shortcomings, the official stressed that as for energy, the construction of coal-fired power plants needs to proceed with caution. Although Vietnam still has hydroelectric resources, developing renewable energy will contribute to improving electricity supply issues.

With regard to transportation, metro lines under construction will partially alleviate current traffic problems. However, further improvements are needed in expressways, high-speed railways and airports.

There is much work to be done, but the focus should be on these two sectors first, and AIIB is always ready to support Vietnam, said Jin Liqun.

Established in 2016, AIIB is a multilateral development bank that began with 57 founding member countries, including Vietnam. Its membership has since expanded to 109, representing 81% of the global population and 65% of global GDP. To date, AIIB has approved 274 projects worth over 53.5 billion USD for its member countries.

In Vietnam, AIIB has approved three projects totaling 223 million USD. Most recently, in early July, the bank invested 75 million USD in green bonds issued by the Southeast Asia Commercial Joint Stock Bank (SeABank). In 2021, it granted a loan of 95 million USD to the 125MW Dakdrinh Hydropower Plant in central Vietnam. In 2020, it approved a 100-million-USD loan to the Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to help sustain business activities disrupted by the COVID-19 pandemic./.