France will provide Vietnam with a EUR20 million loan to help Ho Chi Minh City achieve its socio-economic development objectives, meet the challenges of its urban growth and encourage measures to cope with climate change.
The financing agreement will be signed on May 5 between Vietnamese Finance Minister Vu Van Ninh, General Director of the French Development Agency (AFD) Dov Zerah, and French ambassador to Vietnam Jean Francois Girault.
The fund will enable the building of social housing and educational institutions and reinforcing the capacity and care of hospitals, as well as modernising waste collection and management.
AFD was the first investor to grant EUR30 million for a social housing project in 2006 that benefited 10,000 people, as well as other projects for education, health, and the environment.
In this new finance agreement, the total accumulated net commitments made by AFD for public official development assistance (ODA) in Vietnam will amount to about EUR1.05 billion.