World Bank Supports Vietnam’s Competitiveness with US$150 Million Loan
The World Bank’s Board of Executive Directors recently approved a US$150 million loan to the government of Vietnam for the Third Economic Management and Competitiveness (EMCC3) development policy operation. The loan is providing flexible budget support to the Government while reinforcing selected structural reform priorities in the government’s Socioeconomic Development Plan.
The loan is financed by the World Bank’s International Bank for Reconstruction and Development, the financing window for middle-income countries. The US dollar-denominated loan is a LIBOR based, fixed spread loan with 29.5 years maturity, including a grace period of 10 years.
The operation, EMCC-3, is concluding a series of three. The first EMCC-1 supported a number of pieces of legislation and government decisions to promote reforms including prime ministerial decisions to restructure General Corporations and State Economic Groups; strengthen supervision in the banking sector; and strengthen the institutional framework for debt management. The Laws on Tax Administration and Anti-Corruption were amended to introduce new provisions aimed at improving public administration.
The EMCC-2 built on those to promote increased foreign participation in the banking sector and adopt a plan to address non-performing loans; strengthen medium-term debt management and improve the efficiency of public financial management; promote restructuring of State Economic Groups and improve transparency in state-owned enterprises; and strengthen the legal framework for public procurement, value-added tax and corporate income tax.
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