Hanoi to cooperate with IFC in urban development

Hanoi is expected to cooperate with the International Finance Corporation (IFC), a member of the World Bank Group, to work out a pilot finance mechanism to fund urban development projects.

Chairman of the Hanoi People’s Committee Chu Ngoc Anh and IFC Regional Manager for Vietnam, Cambodia, and Laos Kyle Kelhofer. Photo: Tu Anh

Chairman of the Hanoi People’s Committee Chu Ngoc Anh gave the remarks in a meeting with IFC Regional Manager for Vietnam, Cambodia, and Laos Kyle Kelhofer today [March 26], aiming to realize the Memorandum of Understanding (MoU) signed between the two sides in 2020.

Referring to IFC’s suggestion of the necessity to have a next-generation strategy to attract FDI, Anh said Hanoi is set to hold a conference to discuss measures promoting foreign investment capital to the city.

On his part, Kelhofer noted that the IFC is one of the largest global development institutions running projects worth around US$25 billion for developing countries.

Kelhofer said in 2020, the organization invested US$1 billion in Vietnam, making the country to be the IFC’s top 10 partners, and on track to join in the top 5.

The IFC’s representative mentioned two initiatives that Vietnam could diversify its financing sources for urban development, including the issuance of green bond and through the APEX clean energy access fund.

Kelhofer highlighted Vietnam’s positive economic prospect amid the Covid-19 pandemic, saying the fact that credit rating agencies have upgraded the country’s outlook would bring more opportunity for Hanoi to access preferential loans.

IFC is committed to joining Hanoi in the search for the best financing mechanism that suit the capital city’s vision for development.