Vietnam targets $5.5 billion in foreign loans for 2026 to boost infrastructure development
FILE PHOTO: A Vietnamese flag flutters on the day Chinese President Xi Jinping visits the Ho Chi Minh Mausoleum during his visit to Hanoi, Vietnam, April 15, 2025. REUTERS/Athit Perawongmetha/Pool/File Photo
HANOI, Jan 16 : Vietnam plans to secure $5.5 billion in foreign loans in 2026 as it seeks to speed up the construction of large-scale national infrastructure projects and tackle persistent bottlenecks in the disbursement of development finance, its government said on Friday.
Last month, the Southeast Asian nation commenced construction on 234 infrastructure projects worth 3,400 trillion dong ($129.42 billion). Of the total, 18 per cent will be funded by the state, with the remainder to come from private and other investors.
The government did not give a breakdown of the planned 2026 foreign loans or provide detail about the types of borrowing, which are expected to include official development assistance, concessional loans, and other forms of external financing.
In 2025, Vietnam secured $624 million in new ODA and concessional loans for 10 projects, a level consistent with the previous year, according to Deputy Finance Minister Tran Quoc Phuong. However, only 35.27 per cent was disbursed, a decrease from the prior year's rate, Phuong told the National Steering Committee on ODA.
Phuong said the delays were caused by a broad range of challenges including the need to clear land and resettle residents and the difficulty of approving construction projects in forest areas, as well as bidding processes, tax complications, and prolonged loan negotiations.
Issues with land pricing and adjustments to loan agreements further compounded the obstacles, he said.
The government has prioritised public investment as a key driver of the economy, and has set its 2026 GDP growth target at over 10 per cent. A new ODA strategy for the 2026–2030 period aims to attract up to $38 billion, primarily for major infrastructure development.
Vietnam last year amended its public debt management law to streamline processes and delegate more authority for ODA agreement negotiations and address the procedural inefficiencies.
($1 = 26,271 dong)
