Vientiane, Laos, 11 April 2015 - BIDV and the Government of Lao PDR signed credit agreement worth nearly USD147 million for two main projects in Houaphanh province. These projects are to build the Xamtay - Thongthu road and infrastructure development in Xon district, making the total value of the credit agreements signed between BIDV and the Government of Laos to USD200 million. Attending the signing ceremony were Lao Prime Minister Thongsing Thammavong, Lao Deputy Prime Ministers, Leaders of Houaphanh province, Vietnamese Politburo member Le Hong Anh, leaders of Vietnam Ministry of Planning and Investment, State Bank of Vietnam, Vietnam Ministry of Information and Communications, Vietnamese Ambassador Extraordinary and Plenipotentiary to Laos and leaders of Nghe An, Thanh Hoa provinces.

Following the cooperation agreement between the two countries on socio-economic development, especially the infrastructure development for the two provinces Houaphanh and Xiang Khouang, the two governments agreed to assign BIDV to study and propose plan on funding the mentioned above projects. BIDV worked with the two governments and agreed that the loan will be non-profit and concessional with tenor up to 15 year, 3-year grace period, and fixed lending rate of 3%/p.a. In addition, the loan allows the Lao Government to decide on the appointment of consultants, contractors, and material suppliers for the projects.

​BIDV funded USD26.84 million for the Xamtay – Thongthu road, increasing the funding for the 97km expanded route to USD80 million. The second component is the project on infrastructure development in Xon district with the BIDV’s funding of USD120 million. BIDV is considering on a 30-million loan agreement for the construction of irrigation dam in Xinh district, Luang Namtha province. It is expected to be signed in May 2015.

Xon is a newly established district, one of the poorest districts in the country with poverty rate of 70% and GDP per capita of USD50, only one fifth of the average GDP of Laos. The support for infrastructure development will help improve the living standards of the local and contribute to the economic development of Houaphanh province to catch with other regions in the country.

Addressing the ceremony, Liane Thykeo - Lao Minister of Finance said the BIDV’s preferential loan for infrastructure projects in Laos shows the significant role of BIDV in contributing to the economic development of Laos and is a proof of the two sides’ special economic cooperation relations.

Addressing the ceremony, Mr. Tran Bac Ha, Chairman of BIDV/AVIL said, “with 16 years of experience operating in Laos, BIDV and its commercial establishments in Laos (LVB, LVI, Rep Office) have made great contributions to the socio-economic development of Laos. The USD230 million preferential loan realizes the commitment on supporting the two provinces of Xiang Khouang and Houaphanh made by the two countries. It is the evidence for the special sustainable friendship between Vietnam and Laos. By enhancing financial strength for LVB, BIDV continued to make significant contributions to the socio-economic development of Laos in the coming time”.

Mr. Nguyen Manh Hung - Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to Laos affirmed that the signing and successful implementation of the project will have an especially important socio-political significance, contributing to enhance the ties of the two countries, especially the comprehensive cooperation of the Government and people of the two countries.

The aforementioned loan will be disbursed in early May 2015. BIDV is also committed to ensure the loan is disbursed timely and used for right purpose. BIDV also proposed the Lao Government, ministries, and related local authorities to direct the ground clearance and control the progress and quality of the work to complete the project by the second quarter of 2017.

For more information, contact:

Bank for Investment and Development of Vietnam JSC

Hotline: 19009247

Website: www.bidv.com.vn