Photo: Duc Minh

Minister Tuan welcomed the Baran delegation, describing the group as a leading Israeli engineering and project management company with extensive experience in engineering consultancy, design, project management, construction and high-tech solutions for a wide range of infrastructure projects. He expressed his hope that the visit would open a new chapter in investment and trade cooperation between the two countries.

To translate the principle of mutually beneficial, or win-win, cooperation into concrete opportunities, the Vietnamese side had actively prepared information on two high-potential projects in the Hanoi area for presentation to the group. These include a healthcare and elderly care complex associated with Hanoi Medical University, and a university development project – the University Village Complex in Thuan An commune, Hanoi.

Outlining Vietnam’s development priorities, the minister said the country is prioritising more than 70 per cent of its public investment capital for logistics and energy infrastructure. Mobilising social resources and foreign direct investment for social infrastructure, particularly healthcare and education, is therefore essential.

As Vietnam implements the policy directions set out in Resolution No.10-NQ/TW, the Ministry of Finance (MoF) considers Baran’s capabilities to be well aligned with the country’s goal of attracting high-quality investment, enhancing competitiveness and helping domestic enterprises participate more deeply in global value chains.

The MoF also called on Baran to explore and boost investment in Vietnam by Israeli businesses with relevant expertise and strengths in areas such as processing and manufacturing, supporting industries, electronic component production, high technology, transport infrastructure, healthcare, education and environmental protection, as well as to support access to high-quality financing with significant preferential components.

The ministry encouraged Baran to undertake investment and business activities and technology transfers in Vietnam, support human resource development, and strengthen linkages with Vietnamese enterprises.

It also called on the group to help domestic businesses improve their management capabilities and participate more deeply in supply and value chains in areas where Baran has strong expertise, including semiconductor manufacturing plants, oil refineries, pharmaceuticals, seaports, airports and expressways.

Minister Tuan also asked Baran to support Vietnamese businesses in developing and establishing supply and value chains between the two countries and with international partners. The group was also encouraged to help Vietnamese enterprises build supply and value-chain linkages with Baran and facilitate their access to information and opportunities to develop investment projects in Israel, Vietnam and other international markets.

Photo: Duc Minh

Tzur stated Baran’s strong capabilities as a contractor and comprehensive operator of large-scale facilities, ranging from high-tech data centres, semiconductor and pharmaceutical plants to seaports, airports and energy infrastructure. He highlighted that Baran is involved not only in project implementation but also has substantial financial arranging capacity, backed by approximately €6 billion ($7 billion) in its own capital.

The Baran representative said the group could help arrange preferential loan packages from international financial institutions worth up to $164 million for infrastructure projects in Vietnam.

The financing packages would come with highly competitive terms, including grants of up to 35 per cent; loan maturities of 16-17 years guaranteed by an export credit agency; and a fixed interest rate of zero, subject to project feasibility and final approval. The grace period would cover the construction period plus an additional one to two years. For a five-year construction project, for example, repayment of principal and interest would begin only in the sixth year.

Welcoming Baran’s attractive financing proposals, Minister Tuan agreed in principle to cooperation on providing preferential loans from financial institutions for infrastructure development projects in Vietnam.

To ensure effective access to and use of the financing, the minister asked Baran to provide detailed information so that the MoF could assign agencies to examine the specific lending conditions. The MoF will also introduce the financing opportunities to the domestic business community to explore potential cooperation.