Mariam J. Sherman, WB country director for Vietnam, Cambodia, and Laos. Photo: Manh Tuan

The agreement was reached during a meeting on July 28 between Minister of Finance Ngo Van Tuan and Mariam J. Sherman, WB country director for Vietnam, Cambodia, and Laos, at the MoF headquarters in Hanoi.

Minister Tuan reaffirmed the long-standing and productive partnership between Vietnam and the WB Group, while commending the WB's Vietnam office for its close coordination with the MoF.

Following a meeting between the two sides in May 2026, the MoF's departments have worked with the WB to implement agreed priorities and review all ongoing commitments. Cooperation has progressed smoothly, with no major obstacles identified. The latest meeting provided an opportunity to review implementation progress, discuss remaining issues, and agree on the next steps.

Sherman welcomed the MoF's efforts to coordinate Vietnam's borrowing needs with the WB. She noted that the ministry had consolidated proposed borrowing plans from ministries, sectors, and local authorities, giving both sides a clearer picture of Vietnam's financing needs and priority investment areas for the coming years.

According to the MoF's Department of Debt Management and External Finance, Vietnam has submitted its proposed borrowing requirements for 2026-2030, based on financing requests from ministries, government agencies, and localities. The proposals will serve as the basis for developing the WB's lending programme for Vietnam over the next five years.

Under a WB letter dated July 1, the preliminary lending pipeline for 2026-2030 includes around 24 projects with an estimated total loan value of approximately $9.3 billion. The projects are concentrated in transport, energy, climate-resilient infrastructure, and development policy financing.

Several projects have already completed loan negotiations and are expected to be signed in August and September 2026. Another nine projects have received approval for their borrowing proposals and are completing investment policy approvals and feasibility studies.

"Most of the proposed loans are expected to be implemented within the next three years, representing a significant increase in both lending volume and implementation speed compared with recent years," she said.

Minister of Finance Ngo Van Tuan. Photo: Manh Tuan

To ensure effective implementation, the MoF minister said both sides should focus on projects that are well-prepared, have clearly defined financing needs, sufficient counterpart funding, and strong implementation capacity. "Priority should be given to large-scale projects capable of delivering tangible economic benefits," he said.

For infrastructure investment, he said projects should generate broad spillover effects, produce measurable benefits soon after implementation, and create sustainable cash flows. Transport infrastructure projects not only stimulate economic development in the regions they serve but also improve land use efficiency, strengthen connectivity, attract industrial investment, and support the development of services and urban areas.

The minister also stressed the importance of determining appropriate borrowing levels based on the WB's financing terms, while ensuring that Vietnam has the capacity to manage the loans effectively and meet future repayment obligations.

"WB should continue reviewing its lending procedures to shorten project preparation and implementation timelines, while also considering financing terms, including interest rates, to maximise the effectiveness of the loans," he said.

The two sides agreed that the MoF will send an official letter to the World Bank between August 20 and 25. Based on the draft project pipeline, the ministry will conduct a detailed review of each project against the agreed selection criteria and may propose additional projects that align with Vietnam's development priorities.

The meeting also reviewed progress on developing the new Country Partnership Framework, the 2026-2030 WB lending pipeline, pilot projects under the Multiphase Programmatic Approach, and fast-track implementation mechanisms.

The two sides also exchanged views on budget support operations, high-tech investment projects proposed by the WB, and technical assistance for developing Vietnam's Infrastructure Finance Programme and National Investment Fund.

Following the review, both sides agreed that Vietnam's approach to utilising WB financing should shift towards a stronger focus on high-impact, transformational investments that support public debt sustainability while improving the efficiency of public investment.