Mekong Delta Development: Vietnam Secures $2.53B in Foreign Borrowings
Prime Minister Pham Minh Chinh has given the green light for a plan to borrow $2.53 billion from six foreign partners to support the development of 16 infrastructure projects in the Mekong Delta. During a meeting in Can Tho, the capital city of the delta, PM Chinh emphasized that Vietnam’s well-controlled public debt and foreign debt make it feasible to secure more Official Development Assistance (ODA) loans. These loans will be instrumental in driving infrastructure development in the Mekong Delta region.
The proposed 16 projects, put forth by the Ministry of Transport, the Ministry of Agriculture and Rural Development, Can Tho, and 12 Mekong Delta provinces, include the construction of a 415-km coastal road connecting seven provinces: Tien Giang, Ben Tre, Tra Vinh, Soc Trang, Bac Lieu, Ca Mau, and Kien Giang. This project alone will cost nearly VND43 trillion ($1.8 billion). Other projects encompass highway upgrades, reservoirs, and irrigation initiatives.
The six foreign partners involved in these endeavors are the Asian Development Bank, the French Development Agency, the KfW, the Japan International Cooperation Agency, the Export-Import Bank of Korea, and the World Bank. PM Chinh emphasized the strategic importance of the Mekong Delta in the nation’s overall growth. Infrastructure development in the region will create opportunities for new urban and industrial zones, stimulate economic growth, and enhance the quality of the local workforce.
According to the Ministry of Transport, the Mekong Delta currently has 171 km of expressways. Additionally, eight projects spanning a total length of 463 km are currently in progress and expected to be completed by 2026. The Mekong Delta plays a crucial role as Vietnam’s rice basket and a significant contributor to the country’s seafood exports.