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Vietnam joins AIIB to seek new funding source
The Saigon Times Daily
Tuesday,  Jun 30, 2015,19:51 (GMT+7)

Vietnam joins AIIB to seek new funding source

The Saigon Times Daily

HCMC - State Bank of Vietnam (SBV) governor Nguyen Van Binh said Vietnam had joined the Asian Infrastructure Investment Bank (AIIB) as a founding member so as to seek an extra funding source for infrastructure projects.

The governor was quoted by Vietnam News Agency as saying in Beijing on June 29 that Vietnam will use the funding source for effective projects to ensure sustainable economic development. 

Binh and representatives of other founding countries of the AIIB signed the articles of agreement for the Chinese-led development bank in Beijing on June 29.

AIIB, a multilateral financial institution based in Beijing, will have total authorized capital of US$100 billion. The bank’s main objectives are to boost sustainable economic growth through investment in regional infrastructure, with a focus on transport, energy, telecommunications, agriculture, environment and urban development.

The bank currently has 57 founding members and is expected to make its debut at the end of this year.

Speaking to the media in Beijing, Binh said becoming one of the bank’s founders is in line with Vietnam’s policy for active and responsible international economic integration. 

Vietnam and other ASEAN countries were among the first to support the idea of the AIIB, presented by Chinese President Xi Jinping at the October 2013 APEC summit, and join negotiations for the bank’s establishment, he said.

The move showed Vietnam’s willingness to build, maintain and reinforce a favorable environment for the comprehensive partnership with China in the economic, trade and investment sectors. 

Binh said Vietnam needs huge investment capital for infrastructure through 2020 but domestic sources will not be enough. As concessional loans from international institutions such as the World Bank and the Asian Development Bank will be gradually phased out as the country has become a middle-income country, it is vital to find capital from other sources.

Binh said as a founding member, Vietnam has certain rights, including having a voice in the policy making process or holding some executive position.

 

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