Viet Nam and ADB

ADB’s assistance program for Viet Nam for 2024–2026 focuses on the country’s transition to a climate-resilient and sustainable economy, driven by the private sector and continued policy reforms.

ADB's Work in Viet Nam

Strong headwinds from the global economic slowdown and a significant reduction in external demand dampened Viet Nam’s growth in 2023. However, the Government of Viet Nam was proactive in its policy responses to maintain macroeconomic stability and support economic recovery. The economy remained resilient with subdued inflation and improving domestic consumption. Viet Nam’s medium- and long-term economic prospects are promising, aided by sound economic fundamentals, a growing middle-income class, and expanding market access potential from multiple free trade agreements and partnerships. 

The Asian Development Bank (ADB) helps Viet Nam enhance climate-resilient transportation, promote sustainable urban development, improve rural connectivity, and reduce pockets of poverty in remote areas. ADB’s assistance portfolio also supports the country’s governance and institutional capacity and promotes gender equality, in line with the two pillars of (i) transitioning to a green economy and (ii) harnessing the private sector and promoting social equity, as stated in the country partnership strategy (CPS), 2023–2026

Viet Nam’s vulnerability to natural hazards presents major risks to the country’s economy and infrastructure. Addressing climate change will remain at the core of ADB’s support program for Viet Nam, with the goal of supporting climate change adaptation and environmental sustainability, green development, digital transformation, and regional cooperation and integration. 

In 2023, ADB approved an additional $1-million technical assistance project to help identify climate- and disaster-resilient projects for potential ADB financing, and to build capacity in preparing and processing projects for selected provinces. To strengthen the government’s economic management capacity, ADB also provided $1 million in technical assistance for (i) macroeconomic monitoring, (ii) the planning and execution of public investment and external financing, and (iii) development policy formulation. 

To support Viet Nam in meeting its commitments to achieve net zero by 2050 made at the United Nations Climate Change Conference in Glasgow (COP26), ADB also approved a $7-million technical assistance project to provide policy advice and capacity building to nurture financial technologies which will help address persistent financial inclusion challenges and improve green banking practices. 

As of 31 December 2023, ADB has committed 458 public sector loans, grants, and technical assistance totaling $16.5 billion to Viet Nam. ADB’s current sovereign portfolio in Viet Nam includes 28 loans and 2 grants worth $2.95 billion.

Cumulative sovereign and nonsovereign loan and grant disbursements to Viet Nam amount to $12.79 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds. 

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Viet Nam as of 31 December 2022 was $1.39 billion representing 10.9% of ADB’s total private sector portfolio.

Operational challenges. Viet Nam’s vulnerability to natural hazards, such as floods, storms, and drought, presents a major risk to the country’s economy and infrastructure. Future COVID-19 waves or new variants could affect the achievement of the objectives of the Socio-Economic Development Plan 2021–2025. ADB will continue to play a proactive role in disaster risk reduction efforts in Viet Nam as well as provide support for health system resilience.

Photo: Asian Development Bank
Pupils of class 9A of Dong Tien Secondary School, Pho yen District, Thai Nguyen Province, Vietnam learn in a chemistry class supported by ADB. The ADB project provided funding for the construction of classrooms, upgrading of learning equipment and enhancing education quality for 500 pupils each year. Photo: Viet Tuan Tran/ADB

Knowledge Work

The country knowledge plan for Viet Nam is an integral part of the CPS 2023–2026 and comprises ADB’s knowledge support to complement its lending operations in addressing the country’s evolving socioeconomic development needs. 

Knowledge solutions delivered in 2023 include (i) policy support for the revision of the law on water resources, and technical review of the land law and the law on cooperatives from the ethnic minority perspective; (ii) capacity-building programs delivered to government agencies on knowledge management and strategic planning, tax administration, statistics, public–private partnerships, and gender mainstreaming; and (iii) various research, including support for the Organisation for Economic Co-operation and Development (OECD) Economic Surveys: Viet Nam 2023, and studies on digital and green growth, socioeconomic development of ethnic minorities, and development of women-owned small and medium-sized enterprises.

Shareholding and Voting Power

Number of Shares Held
36,228 (0.341% of total shares)

Votes
75,342 (0.567% of total membership, 0.87% of total regional membership)

*Overall capital subscription
$486.06 million

*Paid-in capital subscription
$31.54 million

* United States dollar figures are valued at rate as of 31 December 2023.


ADB Governor: Nguyen Thi Hong
ADB Alternate Governor: Pham Quang Dzung
ADB Director: Sangmin Ryu (Republic of Korea)
ADB Alternate Director: Damien Horiambe (Papua New Guinea)
ADB Director’s Advisors: Sun Young Jin (Republic of Korea) and Hsu-Juan Hou (Taipei,China)

 

Financing Partnerships

Financing partnerships Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing. 

Cumulative cofinancing commitments in Viet Nam: 

  • Sovereign cofinancing: $4.6 billion for 61 investment projects and $147.82 million for 99 technical assistance projects since 1972
  • Nonsovereign cofinancing: $15.23 billion for 26 investment projects since 1998

 

Future Directions

The Country Partnership Strategy (CPS) 2023-2026 supports Viet Nam in fostering inclusive, green, and private sector-led growth, with the goal of becoming an upper middle-income country by 2030. The CPS and ADB’s updated pipeline for 2024–2026 closely align with Viet Nam’s strategic priorities for medium- and long-term post-pandemic recovery, including (i) addressing climate change impacts; (ii) improving the efficiency of the economy; and (iii) promoting a science-, technology-, and innovation-based economy. 

ADB will strengthen its sovereign operations at both the central and provincial levels following the recent substantial devolution of decision-making on public investments to the provinces. ADB will provide integrated lending and knowledge solutions focused on climate change and private sector development. ADB’s operational approach in Viet Nam will continue with (i) a proactive provincial approach while focusing on national priorities; and (ii) promoting greater synergies among sovereign and nonsovereign operations, advisory services, and knowledge work.

This article was originally published in the ADB and Viet Nam: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Contacts

Viet Nam Resident Mission
3rd Floor, CornerStone Building
16 Phan Chu Trinh Street
Hoan Kiem District, Ha Noi, Viet Nam
Tel: +84 24 39331374
Fax: +84 24 39331373
E-mail
www.adb.org/viet-nam
 

State Bank of Viet Nam
25 Ly Thuong Kiet Street
Hoan Kiem District, Ha Noi, Viet Nam
Tel: +84 24 39343364
Fax: +84 24 38250612
E-mail

Latest on Viet Nam

Partnership Report 2023 Overview

| Video

Partnership Report 2023 Overview

ADB’s Partnership Report 2023: Climate Action, Sustainable Development is a digital publication that highlights how ADB and its partners accelerated climate action and sustainable development in the Asia and Pacific region in 2023, bolstered by a 44% increase in cofinancing compared to 2022.

Getting More Women into Asia’s Parliaments is Key to Gender Equality

| Blog Entry

Getting More Women into Asia’s Parliaments is Key to Gender Equality

Achieving gender equality in national legislatures in Asia and the Pacific is attainable through political will, robust gender quotas, and supportive mentorship programs.

Creative Economy Seminar: Our Common Future

| Event

Creative Economy Seminar: Our Common Future

The Creative Economy Seminar will discuss how fostering the creative economy can advance sustainable development, social inclusion, intercultural exchange and tourism, and international influence.

Pandemic Resources and Better Living Conditions Are Key to Tackling Tuberculosis

| Blog Entry

Pandemic Resources and Better Living Conditions Are Key to Tackling Tuberculosis

The resurgence of detected TB infections after the pandemic has revealed persistent challenges in Southeast Asia, where socioeconomic factors exacerbate the disease's prevalence.