WB approves US$500 million credit to Vietnam

The credit aims to support the Government’s economic management reforms to enhance the country’s competitiveness.

The EMCC-2 is focused on  strengthening financial sector governance and fiscal management for macroeconomic stability; enhancing public administration, SOE management, and public investment management for more transparency, efficiency and accountability in the public sector; as well as reforming tax and procurement policies and reducing administrative burdens to create a more enabling business environment.

“This program supports reforms that should help address some of the binding constraints to private sector investment.  Promoting a stronger role for the private sector in the economy is critical for Vietnam’s future growth.” says Victoria Kwakwa, the World Bank Country Director for Vietnam.  

In another development, the WB’s Board of Executive Directors also approved a US$250 million credit to fund the Results-Based National Urban Development Program in the Northern Mountains Region (RBNUDP-NM), using an innovative approach to financing that links funds directly to results.

Seven cities in the Northern Mountains of Vietnam, a lagging region with the highest concentration of extreme poverty, will participate in a new performance-based program to strengthen their capacity as engines of regional economic growth.
“The growing urban centers in Vietnam’s Northern Mountains region play a key role in local area development, serving as economic and administrative hubs and commercial centers for regional or cross-border trade,” said Victoria Kwakwa, WB Country Director for Vietnam. 

Cities participating in the Program will receive funds for specific measures to enhance their management capacity and for developing local infrastructure such as roads, bridges and drainage, as well as for upgrading low-income areas. The Ministry of Construction will coordinate and oversee the Program and provide technical assistance to the participating cities.