The Asian Development Bank (ADB) and Binh Duong Water Environment Joint Stock Company (BIWASE) signed a $13 million loan to finance the construction and operation of a composting plant, and waste-to-energy (WTE) facility in Binh Duong province.
The assistance will support Vietnam’s efforts to achieve net-zero greenhouse gas emissions, and expand high-tech manufacturing industries.
Faster growth in both the government and corporate bond segments pushed Vietnam’s local currency bond market to reach $91.5 billion in the end of last year, up by 9.8 per cent from the third quarter of 2021.
Vietnam’s economic growth is expected to slow down due to a resurgence of Covid-19 that has tightened the labor market, lowered industrial output, and disrupted agricultural value chains, according to latest report released by the Asian Development Bank (ADB).
The financing includes a $2.7 million grant from the Government of Canada and a $1.9 million grant from the Government of Australia, both to be administered by ADB.
It is ADB’s first financing of a wind power project in Vietnam, comprising a $35 million A loan directly funded by ADB and an $81 million syndicated B loan.
While Covid-19 drags on local currency bond markets in emerging East Asia, the market still got a positive increase.
The project also marks the largest installation of floating solar PV panels in Southeast Asia.
While domestic think tanks in Vietnam show optimism on the local economic growth and forecast a better performance than the government’s target, international organisations are more cautious with lower projections.
Vietnam’s LCY bond market is smallest in size compared to other emerging East Asia markets such as Indonesia ($217 billion), Singapore ($310 billion), Malaysia ($353 billion) and Thailand ($399 billion).
