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Dinh Vu

Economic Sector

Last updated: Tuesday, June 19, 2018


Continuing to Strengthen the Development of Vietnam

Posted: Monday, June 26, 2017

“Vietnam continues to strive for more – for higher growth, more advanced industrialisation, and a better quality of life for all of its citizens. Vietnam’s growth trajectory is proof of the country’s commitment to excellence, but meeting these ambitions will require a fine-tuning of both approach and implementation."

This is an opinion of Mr Ousmane Dione, Country Director of the World Bank in Vietnam, when announcing World Bank Group’s (WBG) new Country Partnership Framework (CPF) with Vietnam which was recently endorsed by the Board of Executive Directors.

The CPF will propose the following directions to strongly support Vietnam - accompanying Vietnam in the process of trying to develop and implement its own development and growth goals. At the same time, CPF will support the implementation of the headings in Vietnam's five-year Socio-economic Development Plan 2016-2021 and the objective of environmental and economic development equalization, improving equality and enhancing the ability and accountability of the state.

With the new CPF, the Board of Executive Directors will continue to support Vietnam to develop and achieve a higher level of success in the middle-wealth and middle-income countries, and graduate from the International Development Association – a loan for low-income countries of the World Bank.

The Framework is continuing to develop the WB’s robust services in Vietnam, coordinating and complementing other development partners, and mobilising additional sources, such as commercial capital and the participation of businesses. The 4 privileges include: comprehensive development and participation of private sector; investment in human and intelligence; stable environment and response ability; and good admin. The CPF will be implemented with involvement of the local governments. It will test and apply multi-regional approaches, and will address the problem through a series of supports such as: consultant, analysis, policy dialogue, landing and forming strategic partners.

Undeniably, the CPF was drafted based on the analysis in the Vietnam 2035 report: towards prosperity, creativity, equity, and democracy, and the national assessment of Vietnam in 2016 and set out a number of strategic shifts including: comprehensive support for the development of the private sector and the involvement of private sector in economic sectors; Bidding for financial guarantee of public services and social policies; Reducing the poverty rate among ethnic minorities via creating jobs and income; Supports multi-sectoral cooporation between education and training institutions and the labour market; and encourage power production with low carbon emission.

“Over the period of this renewed partnership, the World Bank Group’s engagement in Vietnam will focus on key reform and development areas that may have transformative impact. And we will mobilize all our institutions – World Bank, IFC, MIGA – and the instruments and products we have to effect transformative change, be they lending, policy dialogue, analytical and advisory work and/ or guarantees,” said Ousmane Dione.

Throughout the CPF period, the International Finance Corporation (IFC) will also leverage its investment and advisory services and mobilise long-term financing for investments that have strong socioeconomic benefits, and support the development of Vietnam’s capital markets. To help boost the country’s economic competitiveness and advance private sector development, IFC will continue to attract international investors to key sectors of finance, infrastructure, manufacturing, and energy, combining global expertise with local knowledge and leveraging investment returns and social benefits.

Through its traditional political risk insurance and credit enhancement products, the Multilateral Investment Guarantee Agency (MIGA) will complement World Bank lending and IFC engagement by mobilizing private investment and supporting commercial borrowing by the government, and potentially also by State-Owned Enterprises. Wherever possible, MIGA will seek to support projects alongside other WBG entities, or in sectors where the WBG is already active.
“MIGA stands ready to play its part in delivering this ambitious WBG Country Partnership Framework for Vietnam”, said Tim Histed, MIGA Head of Southeast Asia. “MIGA can deploy its full range of political risk and credit enhancement products in the country, and look forward to helping foreign investors bring high impact projects into the country, particularly in the renewable energy sector.”

Anh Mai

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