WB wants to help Vietnam speed up reform

The World Bank (WB) is ready to support Vietnam in speeding up reform to raise the competitiveness of the economy, obtain strong growth and reduce poverty, said visiting vice president for East Asia and Pacific region of the global lender Pamela Cox.

Speaking at the meeting with Vietnamese national leaders in Hanoi on Thursday, Cox appraised Vietnam’s achievements in poverty reduction, improvement of living standards and education. However, she urged the country to boost the reform process, and restructure public investment, the financial sector and State-owned enterprises (SOEs) to reduce risks and help turn Vietnam to a successful middle-income country.

The national partnership strategy between Vietnam and the WB in the 2012-2016 period will focus on manpower development, market mechanism enhancement and infrastructure development, Cox was quoted by Vietnam News Agency.

Minister of Finance Vuong Dinh Hue during his meeting with Cox suggested the WB to extend International Development Association (IDA) capital access time for Vietnam.

IDA capital provided by the WB’s International Development Association has no interest rate. The preferential credits carry a 0.75 percent service charge while have repayment periods of up to 40 years and a 10-year grace period.

Hue said the IDA credits have a great meaning to Vietnam as the nation still has a high ratio of poverty. The government is attempting to reduce poor households in 63 poverty-stricken districts nationwide. Besides, Vietnam is vulnerable to climate change impacts.

Hue also suggested the WB to support the Vietnamese government in SOEs restructuring, building up policies and legal framework, especially in SOEs governance and supervision. The WB was also suggested providing financial and technical support for Vietnam to restructure the financial sector, especially matters related to bad debts of enterprises.

The WB next month will send a working group to Vietnam for discussion with other donors and consider assistance for the nation’s SOE restructuring scheme.

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