WB Pledges $4.2B for Country Partnership Strategy in Vietnam by 2016

The World Bank (WB) has pledged to fund $4.2 billion to help Vietnam implement a new Country Partnership Strategy (CPS) in the 2012-2016 period. The information was released at a working session between the WB and the Ministry of Planning and Investment (MPI) in the capital city of Hanoi on May 31. Accordingly, the soft loan, which will be channeled through the WB and the International Development Association (IDA), will focus on increasing Vietnam’s competitiveness, ensuring sustainable development and widening the access to socio-economic development opportunities. The new five-year strategy will support investments, programs and advisory services organized into a strategic framework of three pillars and three cross-cutting themes, including boosting governance; promoting gender equality; and improving resilience in the face of external economic shocks, natural disasters, and climate change impacts. The WB Country Director in Vietnam, Victoria Kwakwa, said the new strategy is expected to contribute to effectively supervising the use of resources and enhancing operational efficiency. MPI Deputy Minister Cao Viet Sinh affirmed the significance of the new CPS, especially when the government has announced its socio-economic development strategy in the 2011-2020 period, with a focus on structural reforms, environmental sustainability, social equity, and emerging issues of macroeconomic stabilization. This is Vietnam’s largest IDA allocation, reflecting its strong performance as well as an increase in IDA resources overall. The country is also expected to have access to International Bank for Reconstruction and Development (IBRD) resources, estimated at nearly $770 million, until mid-2014. Since 1993, the WB has provided nearly $14 billion in credit, loans and grants to help Vietnam sustain growth and fight poverty. The biggest multilateral donor WB pledged $2 billion in ODA for Vietnam in 2012. (Tuoi Tre - Youth June 1 p4, Quan Doi Nhan Dan - People’s Army June 1 p8, vov.vn May 31)