ADB, Vinschool sign sustainability-linked loan for Vietnam’s education sector

The loan will be used to expand the Vinschool education system, providing educational facilities for 20,400 students in urban areas of Hanoi, Ho Chi Minh City, and Hung Yen.

“This project marks ADB's first private sector investment in Vietnam's education sector and highlights our commitment to fostering sustainable development in the country,” said ADB country director for Vietnam Shantanu Chakraborty. "By supporting the country’s first sustainability-linked loan in the education sector, we aim to enhance educational infrastructure while contributing to new residential hub development in the country."

ADB has syndicated and structured a financing package that includes a $40 million loan from ADB Ordinary Capital Resources, a $35 million loan from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2) administered by ADB, and $75 million in parallel loans.

The parallel loans comprise $40 million from ILX, an Amsterdam-based emerging market asset manager, and $35 million from the Emerging Africa & Asia Infrastructure Fund, an emerging market infrastructure debt fund established by the Private Infrastructure Development Group and managed by NinetyOne. The loan has been validated through a second-party opinion from DNV Business Assurance Vietnam Co., Ltd.

Vietnam has made significant progress in expanding education coverage, achieving an impressive 98 per cent literacy rate and over 98 per cent primary education enrolment. However, as the nation strives to transition from a developing to a middle-income country, there is a critical need to improve education quality and enhance education access in rapidly urbanising cities. The private sector, including institutions like Vinschool, is vital in bridging this gap.

"We are delighted to partner with ADB and other impact-focused lenders on this groundbreaking initiative. This investment will enable us to provide high-quality learning opportunities to more students while setting a benchmark for sustainable education in Vietnam," said Vinschool CEO Phan Ha Thuy. "This is a project that underscores Vinschool’s commitment to environmental, social, and governance principles, reinforcing its dedication to sustainable development."

LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable healthcare, education, and communication services to ADB’s developing member countries.

Established in 2013, Vinschool is the largest private school system in Vietnam, offering high-quality education from kindergarten to high school. Vinschool currently serves more than 48,000 students across 54 campuses in Hanoi, Ho Chi Minh City, and four other provinces, offering both national curriculum and Cambridge bilingual programmes. Vinschool is a subsidiary of Vingroup JSC, one of Vietnam’s largest conglomerates.

14 Vinschool students top global rankings in Cambridge exams In the 2024 Cambridge IGCSE and AS/A-Level exams, 14 Vinschool students delivered exceptional results: eight students were named “Top in the World,” and seven earned “Top in Vietnam” honours, with one student achieving both distinctions.

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