The Asian Infrastructure Investment Bank (AIIB) has announced a pledge of USD5 billion in concessional financing for various transportation infrastructure projects in Vietnam. This pledge includes the development of a North-South high-speed railway (HSR) and urban metro lines in Hanoi and Ho Chi Minh City.
This move is in line with AIIB’s commitment to providing all USD5 billion at concessional rates, compared to other international initiatives like the Just Energy Transition Partnership (JETP), which involves market-rate lending. The competitive landscape of international infrastructure financing in Southeast Asia (SEA) is different from countries like Vietnam and Indonesia, which have multiple options for funding their development needs.
