The Hanoitimes - International Finance Corporation (IFC) committed US$3.4 billion in fiscal year 2018 in East Asia and the Pacific, spurring the growth of a thriving private sector in the region.
IFC, a member of the World Bank Group, stated it would promote private investments in the power sector and agribusiness in a number of countries, including Vietnam in the fiscal year of 2019.
IFC committed US$3.4 billion in fiscal year 2018 in East Asia and the Pacific, spurring the growth of a thriving private sector in the region to ensure sustained growth through innovation, job creation, and infrastructure development, among others.
In Vietnam, where only about 35% of the population is connected to piped water, IFC lent US$15.3 million to one of the first private sector water companies - DNP Water JSC - to increase availability of clean water for urban households and residents in provincial cities.
Overall, IFC provided $2 billion in financing for its own account and mobilized US$1.4 billion from other investors in the fiscal year, with IFC's support enabling businesses to provide over 550,000 jobs, distribute power to 4.4 million people, provide water to 9.6 million people, and improve livelihoods of more than 710,000 farmers.
Rapid urbanization and increasing business demand in the East Asia and the Pacific region are feeding massive infrastructure needs, while at the same time, the region is a major contributor to the global greenhouse gas emissions and highly vulnerable to natural disasters and climate impact.
"In the face of countries' limited public resources, IFC has been actively looking for solutions to crowd in all possible sources of finance, innovation, and expertise to help meet their challenges," said Vivek Pathak, IFC's Regional Director for East Asia and the Pacific. "IFC is unlocking opportunities in emerging markets and creating jobs with the aim of achieving sustainability through lower costs and efficient service delivery in key sectors such as finance, infrastructure, healthcare, and education."
As the private sector contributes 90% of jobs in the region, IFC has been boosting its support to small and medium sized enterprises (SMEs) to promote job creation, which is key to reducing poverty in the region.
In addition to financing, IFC advises governments and the private sector in the region to create a business-enabling environment and improve sustainability standards. At the end of the fiscal year of 2018, IFC's advisory services program in East Asia and the Pacific included 108 active projects valued at a combined US$244.1 million.
In the fiscal year of 2019, in coordination with other World Bank Group's member organizations, IFC's strategic focus continues to be on maximizing private finance to address development challenges.
The Hong Kong Monetary Authority's US$1 billion commitment to its Managed Co-Lending Portfolio Program will enable IFC to expand financing projects across region.