The Hanoitimes - The program supports several government reforms to strengthen, deepen, and broaden the outreach of Vietnam’s formal finance sector.
The Asian Development Bank (ADB) has approved a $100 million policy-based loan to develop Vietnam’s finance sector, aiming to support long-term economic growth and tackle rising income inequality.
The Financial Sector Development and Inclusion Program represents a medium to long-term partnership in finance sector development between ADB and the Government of Vietnam. The program is consistent with the government’s Socio-Economic Development Strategy for the 2011–2020 Period, and ADB’s Strategy 2030 in addressing the remaining poverty and income inequality.
“Vietnam’s economic performance in recent years has been impressive but reforms remain incomplete, especially those related to the finance sector. In addition, the limited financial inclusion could exacerbate the rising income inequality and impact long-term sustainable economic growth,” said ADB Financial Sector Economist Duong Nguyen.
“This program will support the government’s efforts to strengthen financial stability, develop domestic capital markets, and enhance financial inclusion,” he added.
The program supports several government reforms to strengthen, deepen, and broaden the outreach of Vietnam’s formal finance sector, the bank said in a press release.
These include improvements in the legal and regulatory framework to resolve non-performing loans and restructure weak credit institutions, the creation of an enabling environment for the money market and government bond market development, and policy measures to introduce market-based approach to financial inclusion through microfinance and financial technology.