Technical company

Sweden guaranteed $ 2 billion in loans to finance Vietnamese airport projects

Long Thanh Airport

On December 10, 2020, the Swedish government, a longtime ally of Vietnam, guaranteed up to $ 2 billion in loans from its banks to help finance Vietnamese airport projects, including Long Thanh International, which is set to become one of the most important in the South East. Asia.

The guarantee is given by the Swedish Export Credit Corporation.

Aviation news site AeroTime Hub reports that the funding will increase Vietnam’s air traffic management capacity and help finance the construction of Long Thanh as well as a third terminal at Tan Son Nhat International, which all serve two Ho Chi Minh City.

Work on Long Thanh’s $ 4.8 billion first phase is scheduled to begin this month. The move follows an announcement by the Export Credit Corporation around the same time last year that offered $ 1 billion in export protection.

As with the December 2019 offer, Vietnam would be required to spend a third of the loan on Swedish equipment.

Vietnam’s airport construction industry is experiencing a boom caused by the country’s growing popularity as a tourist destination. Last year, 16.3 million international travelers arrived in the country, a 15% increase from the previous year, according to Global Construction Review.

Vietnamese Prime Minister Nguyen Xuan Phuc has set a target of increasing the total capacity of 22 Vietnamese airports to 100 million.

In addition to the new Long Thanh mega-development, improvements are planned for small airports in the northwestern province of Lao Cai, the southern tourist destination of Phu Quoc, Chu Lai in central Quang Nam province and the airport. northeast of Van Don.

Sweden has a tradition of warm relations with Vietnam. In 1969, it was one of the first states in the non-Communist world to establish bilateral relations with Hanoi and was a donor for a project promoting judicial reform, anti-corruption, transparency and equality of sexes.

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