The Asian Development Bank (ADB) provided loans worth US$249 million for two projects on water supply and improving road quality in Vietnam
The first loan worth $212 million goes to a project to bring piped water to more than 3 million people in six cities and provinces.
The second loan aims to improve road quality and safety with reduced HIV and human trafficking risks along the southern coastal route to Cambodia.
"Delivery of clean water is significant to improve health and living conditions of people, especially poor women and girls," said ADB Country Director for Vietnam Tomoyuki Kimura.
"Therefore, ADB and the [Vietnam] government accelerate our joint efforts to increase access for poor people to better water services."
The first loan is part of the $1 billion credit package for the Water Sector Investment Program approved in 2011. The program is designed to provide running water to an estimated 500,000 poor households.
The new disbursement will fund sub-projects to build water supply stations and water pipes for 94,000 households in the provinces of Binh Duong, Dak Lak, Quang Tri, Thua Thien-Hue and the cities of Da Nang and Hai Phong.
The second loan consists of $25 million from ADB and $12 million from the Australian Agency for International Development (AusAid), which will provide funds for improving the overall quality of the Greater Mekong Sub-region (GMS) Southern Coastal Corridor project.
It will also finance a detailed design and implementation support for the remaining sections of the GMS Southern Coastal Corridor in Vietnam from Ha Tien to Rach Gia a loan planned for ADB's consideration in 2014.
Through the loan agreement, Vietnam and ADB are looking towards the promotion of economic growth along the corridor through enhancing connectivity with neighboring countries, thus cutting down transport expenditures and facilitating the flow of people and goods among GMS countries.