During a three-day visit to Vietnam concluded last week, World Bank
Chief Executive Officer Kristalina Georgieva reaffirmed the institution’s support to the Southeast Asian country’s to continue implementing its sustainable and inclusive development agenda, including the areas of financing, structural reforms, energy, climate change and private sector development.
At her meetings with Vietnamese leaders, Georgieva reiterated the bank’s strong commitment to supporting Vietnam’s economic and social development, and highlighted the importance of strong public investment to build the human capital which is essential for Vietnam’s long-term competitiveness.
“Vietnam has achieved impressive economic growth
in the last decade and we will continue to support Vietnam’s aspiration to be a modern and industrialized nation by 2035," said Georgieva.
Vietnam has significant opportunities to boost its economy and become more competitive by ensuring macroeconomic stability, pursuing reforms such as restructuring state own enterprises, strengthening the financial sector and supporting domestic private sector development, she added.
At a press meeting, she warned that traditional growth drivers such as cheap labor cost and reliance on export are poised to be exhausted. Therefore, Vietnam needs to create new drivers through reforms, human resources training and superior education.
The World Bank forecasts Vietnam’s economic growth at 6.5%-6.7% in the years to come, which Georgieva said, an impressive figure on the backdrop of the world’s 2%-plus growth.
“Enhancing investment efficiency and increasing opportunities for additional financial resources from the private sector is important, particularly given Vietnam’s fiscal constraints,” she noted.
She said the bank has earmarked $1.8 billion for Vietnam this year to support the country in a number of areas including poverty reduction, with particular focus on mountainous and ethnic minority-inhabited areas, water resources management, and agricultural development.
The World Bank’s current portfolio in Vietnam consists of 49 operations, worth a total of $9.5 billion supporting infrastructure, agriculture, human development and improvement in economic and financial sector management.
Source: World Bank