State-owned Swedish Export Credit Corporation (SEK) proposed a US$2 billion commercial loan to build Long Thanh International Airport and terminal T3 for Tan Son Nhat International Airport.

Sweden’s Ambassador to Vietnam Ann Mawe hands over an intention letter of a commercial loan for Minister of Transport Nguyen Van The. Source: MoT.

Sweden’s Ambassador to Vietnam Ann Mawe revealed the intention at a meeting with Minister of Transport Nguyen Van The on December 4.

Mrs. Mawe added that during the visit of Prime Minister Nguyen Xuan Phuc to Sweden in May, the two countries’ prime ministers discussed a potential loan worth over US$1 billion for Long Thanh airport construction and air traffic control activities in Vietnam.

The loan would come with an interest rate of 4.2% per year, including a 1.25% of insurance fee for the loan. To be eligible for the loan, Vietnam is required to use 30% of the total investment capital to purchase Swedish technologies and equipment.

“Among 28 international airports seen as environmentally-friendly, 10 of which have the participation of Swedish enterprises in providing solutions for management and operation,” the Ambassador continued.

Overview of the meeting. Source: MPI.

At the meeting, Minister The said the ministry would consider thoroughly the proposal and report back to the government.

“We support local aviation firms to access and use this credit, as well as equipment, products and services of Sweden,” stressed Mr. The.

The minister said the Vietnamese government gives priority to aviation development.

“In addition to Long Thanh and Tan Son Nhat airports, Vietnam is planning to upgrade other airports, including the Noi Bai International Airport from the current capacity of 30 million passengers per year to 100 million, and the construction and upgrade of other airports of Lao Cai, Van Dong, and Chu Lai,” stated Mr. The.

Vietnam would need more solution and equipment in the management and operation of airports, which would open up opportunities for local enterprises to cooperate with its Swedish peers, asserted Mr. The.

The construction of Long Thanh International Airport, the largest of its kind in Vietnam, is set to begin this December.

Under Vietnam’s socio-economic development plan in the 2021-25 period, the country would need around US$150-200 billion to finance infrastructure development projects, including airports, seaports, railways and express ways, among others.

Long Thanh airport remains a key investment project for Vietnam, with a capacity of serving 100 million passengers and handling 5 million tons of goods a year, with total investment capital of US$16 billion.

The short-term target of Long Thanh International Airport is to ease the overloading of Tan Son Nhat International Airport in Ho Chi Minh City, and in long-term to become one of the region’s air transportation hubs.