The 25-year loan, with a 10 year grace period, is the first round of a larger loan worth US$ 1billion from the International Bank for Reconstruction and Development (IBRD) under the World Bank Group. The remaining amount is expected to be disbursed by the end of 2010.

The loan is aimed at supporting a programme of public investment reform in Vietnam as well as speeding up the implementation of various projects in the country.

It will also help Vietnam strengthen its stimulus packages and investment reform programmes to ensure economic growth rate.