ADB Lends Vietnam US$80Mln to Upgrade Railways & Develop SMEs

The Asian Development Bank (ADB) on December 27 agreed to lend Vietnam US$80 million to implement two projects, including upgrading the Vietnam-China railway and developing small and medium enterprises (SMEs).

 

Of the total, US$60 million of preferential loan from ADB’s Asian Development Fund (ADF) will help maintain the Vietnam-China railway linking Hanoi suburbs with the Chinese frontier by replacing eroded rails, building a new train station and six railroad bridges, repairing 13 downgraded railway bridges, and improving over 60 others.

 

The project, with a 32-year loan term, is expected to be complete late in 2012 and will also enhance financial management and procedures at Lao Cai border gates.

 

Meanwhile, the ADB sanctioned the soft loan of US$20 million for the second phase of Vietnam’s SMEs development project, which is planned from January 1, 2007 to July 1, 2008.

 

The second phase, with 24-year loan term, aims to create favorable business environment for SMEs by enhancing the policy and regulatory frameworks, improving SMEs’ access to finance, land, and domestic and international.