The Asian Development Bank (ADB) has announced its first private sector investment in Vietnam’s education sector, leading a US$150 million sustainability-linked loan to Vinschool. The loan will reportedly support new facilities for 20,400 students in Hanoi, Ho Chi Minh City, and Hung Yen, The Asset is reporting.
The financing package includes:
- US$40 million from ADB’s ordinary capital resources.
- US$35 million from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2).
- US$75 million in parallel loans from ILX (US$40 million) and the Emerging Africa & Asia Infrastructure Fund (US$35 million).
As Vietnam transitions to a middle-income country, education quality and accessibility remain critical. The ADB’s first private education investment signals growing recognition of the private sector’s role in addressing these challenges. Additionally, the sustainability-linked loan model sets a precedent for future education financing in Vietnam and other emerging markets.
See also: Education in Vietnam