On the afternoon of June 1, in Hanoi, Prime Minister Pham Minh Chinh attended the signing ceremony of a credit contract worth 1.8 billion USD for the Component 3 project of Long Thanh International Airport. This is also the largest medium- and long-term credit in foreign currency for customers ever provided by the Vietnamese banking industry.
The event was organized by the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) - the capital arranger, together with the Joint Stock Commercial Bank for Industry and Trade of Vietnam (VietinBank), the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and the Airports Corporation of Vietnam (ACV).
Accordingly, banks will provide credit of 1.8 billion USD for component project 3 (essential works in the airport) of the Long Thanh International Airport construction investment project phase 1, invested by ACV. This capital is equivalent to about 45% of the total investment of the project, of which Vietcombank finances 1 billion USD, VietinBank finances 450 million USD, and BIDV finances 350 million USD.
Speaking at the event, Prime Minister Pham Minh Chinh stated that the Long Thanh International Airport construction project is an important national project, a key project of the transport sector, a special-level project, of strategic significance to the socio-economic development of the Southern key economic region, as well as to the development of Vietnam's aviation industry and the country's socio-economic development in the coming years.
In 2020, the Prime Minister approved the investment decision for phase 1 of the Long Thanh International Airport project with a scale of 1 runway, 1 passenger terminal, a transport capacity of 25 million passengers and 1.2 million tons of cargo/year. In particular, ACV was assigned as the investor of component project 3 of essential works in the airport - a particularly important component, with a large scale and the most complex technical and technological nature for the entire phase 1 of the Long Thanh International Airport construction project. The total estimated investment for the entire Long Thanh airport is more than 16 billion USD, divided into 3 phases. The total investment for phase 1 is more than 5.4 billion USD, of which component project 3 has a loan demand as of December 13, 2023 of 1.8 billion USD (33%).
On behalf of the Government, the Prime Minister warmly welcomed and commended the active efforts of Vietcombank, Vietinbank, BIDV, and the close monitoring and coordination of the State Bank of Vietnam, which quickly helped arrange a large amount of funding of 1.8 billion USD to promptly support the investor ACV in signing construction contracts with contractors, meeting the project implementation schedule.
The Prime Minister assessed that the provision of a credit line of 1.8 billion USD represents a breakthrough development of domestic commercial banks in arranging foreign currency capital for customers. Along with contributing to promoting safe and sustainable credit growth, the funding of 1.8 billion USD for a large project such as Long Thanh Airport is a clear demonstration of the position and strength of Vietnamese commercial banks in arranging capital for complex and large-scale projects. At the same time, it creates a new positive precedent to encourage and promote the initiative of domestic investors not to depend on foreign loans in the coming time.
Assigning specific tasks to each agency and unit, the Prime Minister hopes and believes that we will definitely complete the construction and technical exploitation of the runway of Long Thanh airport before April 30, 2025 (3 months ahead of schedule compared to the contract), making outstanding achievements to celebrate the 50th anniversary of the Liberation of the South and National Reunification, and focusing on completing, handing over and putting into operation the entire Long Thanh International Airport project in the first 6 months of 2026.
PHAN THAO
Source: https://www.sggp.org.vn/3-ngan-hang-viet-nam-cap-18-ty-usd-cho-du-an-san-bay-long-thanh-post742569.html
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