Sweden offers US$1 billion construction loan for Vietnam’s Long Thanh International Airport
The Swedish Export Credit Corporation (SEK) has reportedly made an offer to loan US$1billion for the construction of phase one of Vietnam’s Long Thanh International Airport.
The news comes after Vu Dai Thang, deputy minister of planning, told a recent conference that the Long Thanh project needs “huge investment capital” and that investment from other countries is a very important factor in the potential success of the development. The conference was held for the purpose of discussing potential financial support for the project and SEK are said to have proposed a loan with an interest rate of 4.2% per annum.
Sweden’s possible involvement in the project follows Vietnamese Prime Minister Nguyen Xuan Phuc’s visit to Sweden earlier this year.
Articles from Vietnam and Sweden say that the Vietnamese government is currently considering the offer.
The Long Thanh International Airport project
Prior to the Covid-19 pandemic, Vietnam was experiencing big growths in its tourism industry and stated that, with international help, they would invest up to $200bn into infrastructure development between 2021 and 2025. Despite the current travel climate, the Vietnam government stills wants to press ahead with plans, as international travel should be back to pre-Covid levels by the end of 2024.
Tan Son Nhat International Airport in Ho Chi Minh City is Vietnam’s busiest airport and saw 38.5million passengers pass through it in 2018. Long Thanh International Airport is about 40km east of Ho Chi Minh City, is being designed to help Ho Chi Minh City cope with the numbers of inbound tourists and business travellers.
Construction work for the first phase of Long Thanh International Airport is planned to commence in April 2021. Once it’s operational in 2025, it will have a capacity of 25 million passengers a year. Phase One is expected to cost US$4.8billion.
Later expansion phases will increase capacity to 100 million passengers per year. When complete, the airport is expected to have a total construction cost of $16bn.
Read my other recent article on Long Thanh International Airport here.
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