09:25 | 08/07/2015 Finance - Banking
Joining the Asian Infrastructure Investment Bank (AIIB) as a founding member, Vietnam will have certain rights, said Governor of the State Bank of Vietnam (SBV) Nguyen Van Binh.
Governor of the SBV Nguyen Van Binh. Photo: VNA
According to the Governor, the rights include having a voice in planning and building policies of the bank, or taking up executive positions, thus enhancing the country’s role in the bank.
Vietnam needs huge investment for infrastructure through 2020, but domestic resources cannot meet the demand, hence the necessity of mobilising capital from foreign sources, Binh said.
He pointed to the fact that the sources of preferential capital from international financial institutes such as the World Bank and the Asian Development Bank will be cut down as the country has become a middle-income country.
Therefore, by joining the AIIB, Vietnam will get access to an important source for infrastructure development, said the Governor.
The country will pay attention to choosing effective and practical investment projects, ensuring sustainable economic development, he added.
Scheduled to make its debut at the end of this year, the AIIB, a multilateral financial institution based in Beijing, will have a total charter capital of 100 billion USD. Currently, the bank has 57 founding members.
The bank’s main objectives are to boost sustainable economic growth through investing in regional infrastructure system, focusing on transport, energy, telecommunications, agriculture, the environment and urban development.
It is estimated that Asian countries will demand infrastructure funds worth some 8 trillion USD for national projects and 290 billion USD for regional connectivity by 2020./.