WB Ready to Support Vietnam Economy to Become More Competitive

The World Bank (WB) is ready to support Vietnam in reforming its economy to become more competitive and cutting poverty, said WB Vice President for East Asia and the Pacific Region Pamela Cox at a press briefing on July 26. At the event, Ms. Cox praised the impressive results that Vietnam has achieved over the past 20 years. The country’s poverty rate dropped from 60% in 1992 to 10% in 2010 and over 90% of the Vietnamese population now has access to electricity. However, Cox noted that Vietnam, during its transition, needs to restructure public investment, its financial sector and State-owned enterprises (SOEs). WB will work with the Vietnamese government next month to assess the country’s financial sector and give recommendations on how to address the sector’s contentious issues, she added. The WB is also committed to helping the government restructure SOEs by providing international experience and necessary technical assistance. The WB Vice President said that she is concerned about the slow disbursement of ODA. She elaborated that when the money is not spent, projects are not implemented as quickly as they should be and the people do not benefit from them. Commenting on recent developments in the Vietnamese economy, Cox said that the Government’s monetary policies have proved to be successful and inflation has been brought down in recent months. She recommended that Vietnam should establish a social safety net to prevent households currently on the edge of poverty from sliding back into it during times of economic shocks and inflation. Earlier, she met with Prime Minister Nguyen Tan Dung, central bank governor Nguyen Van Binh, Minister of Planning and Investment Bui Quang Vinh, Finance Minister Vuong Dinh Hue and National Assembly Vice Chairwoman Nguyen Thi Kim Ngan to discuss Vietnam’s development challenges and opportunities. (Hanoi Moi Jul 27, vietnamplus.vn Jul 26)