The Asian Development Bank (ADB) is funding a new model university for Vietnam that will help one of the region’s most dynamic economies stay on track towards becoming a fully industrialized nation, the bank said Tuesday.
ADB announced Tuesday that it had approved loans of US$190 million to establish the University of Science and Technology of Hanoi, “a state-of-the-art institution which will support research, technical innovation, and skills development.”
The Government of France will complement the ADB assistance by extending about €100 million over 10 years to help develop the university, with the Government of Vietnam providing US$23 million, the bank said.
“As the Vietnamese economy evolves, innovation and technical skills are expected to play an increasingly important role in driving growth and development and this new model university will support this by providing industry-relevant science and technology teaching and research,” Norman LaRocque, ADB’s Senior Education Specialist for Southeast Asia, said in the announcement.
Along with funding physical facilities to accommodate an initial 5,000 students, the project will develop modern governance and management systems and capacity-build senior staff, according to ADB.
The project will also establish centers to promote high quality, relevant academic programs, research, and links to industry groups in the private sector, ADB added.
“The new institution will provide an improved policy framework for the governance, financing, and quality assurance of universities that could be extended across Vietnam,” Mr. LaRocque added.
ADB’s loans comprise US$170 million from ordinary capital resources (OCR), and $20 million from the hard terms facility of its concessional Asian Development Fund (ADF). The OCR loan has a 26-year term, a 6-year grace period, and interest set in accordance with its LIBOR-based lending facility. The ADF loan has a 32-year term, an 8-year grace period, and carries an interest charge of 2.02%.
