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You are here: Home / cat / AIIB Approves $100 Million Facility for VPBank to Boost Climate Finance and Infrastructure in Viet Nam

AIIB Approves $100 Million Facility for VPBank to Boost Climate Finance and Infrastructure in Viet Nam

Dated: July 18, 2025

The Asian Infrastructure Investment Bank (AIIB) and Viet Nam Prosperity Joint Stock Commercial Bank (VPBank) have signed a USD 100 million on-lending facility to promote sustainable infrastructure and support climate mitigation in Viet Nam. This agreement is aimed at expanding VPBank’s capacity to finance green and climate-resilient initiatives.

The new facility will help VPBank fund decarbonization efforts, particularly through electric vehicle (EV) financing. Other potential areas of investment include renewable energy projects, eco-friendly logistics and warehousing, and green building developments. A substantial portion of the funds is dedicated to climate finance, aligning with AIIB’s commitment to environmental sustainability and Viet Nam’s climate goals under the Paris Agreement.

Viet Nam’s ongoing urbanization and economic development have led to a sharp increase in transportation demand, contributing to higher greenhouse gas emissions and air pollution. Shifting toward cleaner transportation options, such as EVs and improved public transit systems, is essential for reducing environmental impacts and achieving national climate objectives.

While the public sector continues to invest significantly in infrastructure, Viet Nam still faces a large financing gap. This AIIB facility is designed to stimulate private-sector participation in infrastructure development, thereby addressing both climate and infrastructure funding needs in the country.

The current agreement builds on a previous USD 100 million COVID-19 recovery facility provided by AIIB to VPBank. That earlier funding supported more than 100 sub-borrowers, including small and women-led businesses. The new facility further supports AIIB’s broader corporate goals of reaching at least 50% climate financing by 2025 and 50% private-sector financing by 2030.

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