ADB approves $45 million loan to help tourism in Vietnam’s secondary towns

Thursday, 13 December 2018 00:00 - - {{hitsCtrl.values.hits}}

The Asian Development Bank (ADB) has approved a $45 million loan to help Vietnam transform secondary towns into more economically inclusive, competitive tourism destinations.

The Second Greater Mekong Subregion (GMS) Tourism Infrastructure for Inclusive Growth Project will help to construct some of the infrastructure needed to boost tourist arrivals and related investments in Hoa Binh, Nghe An, Quang Binh, Quang Tri, and Thua Thien Hue provinces. The project is expected to benefit about 168,000 residents and more than 8 million visitors annually.

“Tourism is growing rapidly in Vietnam, but most growth and corresponding socioeconomic benefits are concentrated in a few gateway destinations. To promote more inclusive and sustainable growth, it’s important for Vietnam to increase public and private investment in secondary towns,” said Steven Schipani, ADB Project Administration Unit Head for Vietnam. Specifically, the project will upgrade about 31 km of urban-rural roads and 13 passenger piers to provide visitors and residents with improved access to cultural and historic sites in all participating provinces.

To help Nghe An’s Cua Lo town attract more visitors year-round, for example, the project will rehabilitate a 5.5-km seawall and beachfront drainage, improve public recreation areas, and expand market space for local vendors. Quang Tri’s Cua Viet and Cua Tung beaches will benefit from similar investments.

Established in 1966, ADB is owned by 67 members, 48 of which are from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in co-financing.