ADB Proposed to Maintain Lending for Vietnam at $1B Yearly

The Vietnam Country Partnership Strategy (CPS) has proposed the Asian Development Bank (ADB) to maintain its lending at around $1 billion per annum while adopting measures to improve the readiness and quality of projects, the bank said in its latest press release. The bank approved a new partnership strategy for Vietnam to support the country’s socio-economic development plan in the 2016–2020 period by fostering more inclusive and environmentally sustainable growth. Vietnam has made rapid progress against poverty reduction and in lifting the quality of health and education. However, Vietnam is starting to face new and more complex challenges. Growth is creating environmental damage and the country is highly exposed to climate change. Previously rapid growth in the working age population is starting to fall and pockets of poverty still remain, particularly in remote and rural regions. To help the government address these challenges, ADB will support investments to achieve three key outcomes. These will help promote job creation and competitiveness, increase the inclusiveness of infrastructure and service delivery, and improve environmental sustainability and climate change responses, said Eric Sidgwick, ADB Country Director for Vietnam. The CPS highlights that Vietnam’s transition from lower-middle income status to middle-income status requires improvements in the efficiency of public expenditure and greater private sector investment. ADB will promote help leverage private sector investment through public–private partnership (PPP), to improve efficiency and service delivery to citizens and gain access to new expertise and technology. The Manila-based lender will also support Vietnam in sustainable natural resource use as well as climate change adaptation and mitigation measures to respond to the heightened risks. ADB knowledge will also play a key role in the new CPS, with a particular focus on strengthening the business enabling environment, promoting fiscal transparency and public accountability, and fostering integrated and green urban infrastructure, he added. ADB, one of the biggest donors in Vietnam, has financed for 160 programs worth over $15 billion in Vietnam. In the 2016-2020 period, Vietnam has targeted economic growth of 6.5%-7.0% a year, the government has said. (ADB’s Oct 11 Press Release, http://tinnhanhchungkhoan.vn/ Oct 11)