Vietnam is considering Sweden’s loans to build Long Thanh International Airport and develop the air traffic control activities.
“Long Thanh International Airport is in need of huge investment capital,” said Deputy Minister of Planning and Investment, Mr. Vu Dai Thang, at a conference held last week discussing the financial mechanism for Long Thanh airport.
“Financial support from other countries, including Vietnam’s development partners like Sweden, is very important,”
At the conference, state-owned Swedish Export Credit Corporation (SEK), proposed a commercial loan of over US$1 billion with interest rate of 4.2% per year, including a 1.25% of insurance fee for the loan, for the construction of Long Thanh airport. To be eligible for the loan, Vietnam is required to use 30% of the total investment capital to purchase Swedish technologies and equipment.
Long Thanh International Airport is planned for construction in Long Thanh, Dong Nai, Vietnam. Located approximately 40 km east of Ho Chi Minh City. Once completed, Long Thanh airport would be the largest of its kind in the country.
Ambassador Måwe expressed hope that Swedish financial institutions could contribute to the success of the project.
“During the visit of Prime Minister Nguyen Xuan Phuc to Sweden in May, the two countries’ prime ministers discussed a potential loan for Long Thanh airport and air traffic control activities in Vietnam.”Sweden’s Ambassador to Vietnam Ann Måwe said
Mr. Thang expected the Ministry of Planning and Investment to continue working with Sweden’s funds and enterprises on the details of the loans for further consideration.
“Under Vietnam’s socio-economic development plan in the 2021 – 2025 period, the country would need around US$150 – 200 billion to finance infrastructure development projects, including airports, seaports, railways and expressways, among others,” Mr. Thang said.
“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,” said Mr.Thang.
The short-term target of Long Thanh International Airport is to ease the overloading of Tan Son Nhat International Airport, and in long-term to become one of the region’s air transportation hubs.
Prime Minister Nguyen Xuan Phuc has assigned state-run Airports Corporation of Vietnam (ACV), the largest operator and operator of 22 commercial airports in the country, to conduct a feasibility study report for the first construction phase of the airport.
The project is scheduled to commence in 2020 and the construction process is slated to be completed by 2025.
During the first phase with investment capital of US$4.77 billion, the project is set to build a runaway, taxiways, a passenger terminal with capacity of 25 million passengers and a cargo terminal of 1.2 million tons of goods in a year, along with other supporting facilities.