The South Korean government will provide a $32.7-million loan for the project and the Vietnamese government will pitch in with $11.2 million.

Thanh Hoa has a population of 200,000 with major industrial and tourism potential. However, infrastructure gaps and a shortage of skilled labor in areas targeted for development have held back investment, the ADB noted.

The project adopts an integrated investment program to upgrade infrastructure, boost skills and human resources, build up the capacity of key service agencies, and enhance its tourism potential, the release said.

The approach would “promote sustainable development and help achieve the objective of arresting the population drift toward major urban centers,” Hubert Jenny, Senior Urban Development Specialist with ADB’s Southeast Asia Department, said.

Reported by The Vinh