VN seeks foreign credit for environment protection

Mr. Trần Xuân Hà, Deputy Minister of Finance and Mr. Francisco de Paula Coelho, Director for Lending Operations in Asia, inked the credit agreement on Tuesday in Hà Nội.

Seventy percent of the credit will be used to mitigate the impacts of climate change though different projects on renewable energies and effective use of energies.

The rest 30% will help increase the European Community’s presence in Việt Nam through direct investment or high technology transfer to the country. 

The Ministry of Finance (MoF), the direct borrower, will re-lend the whole credit to four State-owned commercial banks, namely the Việt Nam Development Bank (VDB), Việt Nam Bank for Agriculture and Rural Development (Agribank), Bank for Investment and Development of Việt Nam (BIDV) and the Việt Nam Bank for Industry and Trade (Vietinbank). These banks are responsible for giving money to borrowers.

Việt Nam is capable of minimizing problems of climate change thanks to its good agricultural land management, vast forests and effective use of energies in construction and industries, said Mr. Francisco.

Deputy Minister Trần Xuân Hà stated that the loan represents strong confidence of international donors and EIB in Việt Nam's development prospect.

It is said that, the loan is the fifth credit EIB has given to Việt Nam and the second deal the bank has penned with the MoF./.

By Kim Anh