A view of Da Nang city, the country's champion in terms of provincial competitiveness. (Photo: laodong.com.vn)
The World Bank
(WB) has approved a $150 million loan to the government of Vietnam for the Third Economic Management and Competitiveness development policy operation, aiming to help reinforce selected structural reform priorities in the government’s socio-economic development plan.
The operation supports a program of concrete policy reforms across three pillars contributing to the government’s efforts to: (i) maintain macroeconomic stability, (ii) create a more transparent, efficient and accountable public sector, and (iii) improve the business environment.
“With this third operation, the WB continues its support to enhance Vietnam’s competitiveness thereby laying the foundation for future growth and prosperity,” said Achim Fock, the WB’s acting country director for Vietnam.
“During the last five years, there has been steady progress in advancing structural reforms in critical areas such as the banking sector, SOE management, and the business climate. These reforms need to be sustained during the implementation of the new five-year plan 2011-2016 to unlock Vietnam’s full growth potential,” the official added.
The loan is financed by the WB’s International Bank for Reconstruction and Development, the financing window for middle-income countries. The USD-denominated loan is a LIBOR based, fixed spread loan with 29.5 years maturity, including a grace period of 10 years.