WB Pledges US$1 Bln for Vietnam A Year to Combat Poverty

Martin Rama, the World Bank's Country Director in Vietnam, has told a press conference on CG meeting that the bank will fund US$1 billion each year for Vietnam to combat poverty and is optimistic about outlook of Vietnam's economy next year.

 

Martin Rama highly valued competitiveness of Vietnamese exports and proposed the Asean country boost exports with items of big values such as apparels, footwear and furniture...as its exports rivals are facing challenges from the crisis as they hold big market shares. Vietnam's exports will possibly decline in late 2008 and early 2009, but not much and as serious as forecast.

 

FDI inflows continue pouring into Vietnam, main drivers for its economic growth, he said.

 

However, the WB official raised concerns over realty bubble and risks when state-owned companies invested into banking and finance sectors and said that the bank will work with the government to issue regulations on state management over SOE's operations.

The WB official proposed the government should have measures to cope with shocks from outside as Vietnam still depends mainly on foreign loans estimated to account for 15 per cent of its GDP value because domestic savings represent 30 per cent of GDP while investments make up 45 per cent.

 

He also refuted 20 per cent of local companies are on brink of bankruptcy. Bankruptcy is possible but small in numbers. (Vietnamnet, chinhphu.vn)