World Bank urges widescale reforms
The World Bank warned that Vietnam would continue to face risks to its macro-economy stability, predicting the nation’s GDP would close at 5.2 percent in 2012 in stead of the planned 6.5 percent.
At the press conference before the bi-annual Consultative Group Meeting, to be held in Hanoi on December 10, Deepal Mishra, leading economist for the bank in Vietnam, said the risks included high-core inflation and low levels of foreign-exchange reserves, a vulnerable banking sector, and delays in equitisation of State-owned enterprises.
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This year’s meeting will focus on the elements laying the foundation for Vietnam’s sustainable growth, which also includes discussion on the nation’s land law and education reforms.
World Bank country director Victoria Kwakwa said donors considered land-law reform as the critical element for Vietnam’s inclusive and sustainable growth.
Kwakwa also noted that donors have been talking about making changes to the Consultative Group’s platform as Vietnam entered a new stage of development, noting that in the future it would move away from resources mobilization to candid conversation on all solutions.
“It’s more about policy dialogue, not so much about the money”, she said.
Still, donors are expected to release a new funding commitment for Vietnam in 2013 at the end of this year’s meeting. Last year, donors pledged nearly US$7.4 billion in Official Development Assistance (ODA) for the country.