Vietnam, Germany Sign US$31 Million Credit Agreement

On the framework of the visit of German Federal Foreign Minister Guido Westerwelle to Vietnam, the German Reconstruction Bank (KfW) and the Ministry of Finance of Vietnam signed two credit agreements worth of US$315 million on June 4.

 

The first financial aid worth US$300 million is for the second metro project in Ho Chi Minh City and the second is for a vocational training project worth US$15 million. The financing for the second metro project in the largest city of Vietnam is part of a lighthouse project of the German-Vietnamese economic cooperation programme.

 

Scheduled for completion by 2016, the subway will provide an effective and competitive means of public transport. The project has a total investment capital of some US$1.3 billion funded by KfW, the Asian Development Bank (ADB) and the European Investment Bank (EIB). Apart from funding, Germany will also transfer its construction and operating technology for the metro line project.

 

Germany also signed an agreement to provide US$15 million for Vietnam’s vocational training programme. The European nation will help Vietnam purchase equipment and teaching materials, particularly for electrics, electronics and metal processing, to modernise vocational training activities.