WB Funds $13.5B for Development Projects in Vietnam So Far

The World Bank (WB) has provided Vietnam with non-refundable aid, preferential credits and loans worth $13.5 billion so far to help the country in its national development. The information was released at a conference on Vietnam-WB cooperation held in the capital city of Hanoi on November 4. In 2009, Vietnam was recognized as a middle-income country with an average annual growth of 6.7% in 2007-2010. In 2008, 15 years after the WB resumed credit relations with Vietnam, the country’s poverty rate dropped to 14.1%, from 58.2% in 1993. The International Financial Corporation (IFC), a World Bank subsidiary, increased its committed support for Vietnam from $62 million in the 2007 fiscal year to over $1 billion in the 2011 fiscal year. As one of the largest WB loan recipients, Vietnam is valued by the WB as one of the ASEAN nations showing the most effective use of its preferential loans. Governor of the State Bank of Vietnam (SBV) Nguyen Van Binh, who is also Vietnam’s governor at the WB, said that WB aid for Vietnam has covered almost all key economic sectors and created a momentum for the country’s development. Although the WB’s preferential loans for Vietnam will tend to decrease in the future due to the country’s middle-income status, Vietnam wants the WB to increase other less preferential sources that are suitable for its next economic development stage, he said. In the future, ODA capital in particular and WB aid in general will continue playing an important role in helping Vietnam successfully implement its socio-economic goals, he added. At the conference, WB Vice President James Adam spoke highly of efforts by the Vietnamese Government as well as the SBV in implementing measures to stabilize the macro-economy, control inflation and ensure social welfare. He noted, however, that Vietnam should continue to implement thorough reforms, especially in the financial system, which is very important for the country’s sustainable growth. To realize its goal of becoming an industrialized country by 2020, Vietnam should have new competitive advantages such as skills and modern infrastructure, and new approaches to reduce poverty, ensure economic stability and solve environmental degradation, the WB representative said. He affirmed that the WB will continue providing major funding for Vietnam’s programs on public investment restructuring and reforms, infrastructure development, education and training, climate change adaptation and inspection of credit organizations. In addition, the bank will provide policy consultations for Vietnam in its development process, he said.  The multi-bilateral biggest donor for Vietnam has pledged around $2.6 billion in official development assistance (ODA) for Vietnam this year. (www.vir.com.vn Nov 5)