ADB helps boost private sector development in Vietnam
VOV.VN - The Asian Development Bank (ADB) has approved US$4.6 million in technical assistance to help the Vietnamese Government strengthen public–private partnerships (PPPs), private sector development, and state-owned enterprise (SOE) reform.
This technical assistance will be used to provide policy advice, assist preparation for infrastructure projects, and strengthen institutional capacities as a means of enhancing sustainable economic growth.
The financing includes a US$2.7 million grant given by the Canadian Government, along with a sum of US$1.9 million from the Australian Government, both of which will be administered by ADB.
“Vietnam has achieved impressive socio-economic development over the past three decades by maintaining high economic growth gained from its structural reforms,” said Donald Lambert, principal private sector development specialist of the ADB .
“To meet the targets of its upcoming Socio-Economic Development Strategy (SEDS) from 2021 to 2030, maintain growth rate of between 6 - 7%, and to achieve the Sustainable Development Goals, Vietnam will need to further accelerate economic reforms, expanding the role of the private sector in driving the country’s development”, he added.
Between 2011 and 2020, Vietnam invested an estimated US$117 billion in infrastructure. However, its infrastructure remains underdeveloped in comparison to its regional peers. In order to update this, the country will need to mobilise an estimated US$237 billion between 2021 and 2030 to close the infrastructure deficit, a sum which is US$49 billion more than the historical spending trajectory.
Upon recognising the potential of the private sector to help close the infrastructure deficit, Vietnamese SEDS for the 2021 to 2030 period will prioritise removing barriers to create greater competition and develop a supportive environment. This is being done with the primary aim of increasing the private sector’s contribution to the economy, including a larger role in infrastructure development.
Moving forward, ADB’s new technical assistance will help to deliver policy advice on PPPs and private sector development, along with piloting projects that embed the G20 Quality Infrastructure Investment principles, whilst strengthening PPP and private sector development institutional capacities.
