Econ
Vietnam continue improving partnership with the World Bank
On September 20, the Prime Minister Nguyen Xuan Phuc has a meeting with the Country Director of the World Bank in Vietnam – Mr. Ousmane Dione.
The Prime Minister highly regarded the World Bank’s effort in assisting Vietnam in recent years, especially in building supporting mechanism in changing the source of International Development Assistance (IDA) suitable to the current situation and conditions of Vietnam. The World Bank has developed the Country Partnership Framework (CPF) Vietnam – World Bank to be the foundation for the cooperation between two sides after Vietnam exceeded requirements for the World Bank’s IDA since July 01.
Mr. Ousmane Dione congratulated Vietnam’s achievements in recent years and said “some reforms initiated by the Prime Minister and the Government including tax reform and measures against bad debts are essential and important to Vietnam”. The World Bank is willing to accompany and cooperate with Vietnam’s administrative agencies in realizing these necessary reforms. Mr. Dione proposed Vietnam to review and consider the establishment of a reform coordinator agency similar to some countries. “I am look forward to listening to the Prime Minister’s suggestions on our cooperation plan in the future” – Mr. Dione said and wanted to know which fields Vietnam is in need of the financial aid.
The Prime Minister said, in recent years, Official Development Assistance (ODA) and concessional loan from the World Bank have significantly contributed to the socio-economic development of Vietnam. The Vietnam’s government pays great attention to the efficient use of these loans. The National Steering Committee for ODA and preferential loans have frequent meetings with ministries and agencies to timely remove barriers, and focuses on solutions to use the loan efficiently.
In the context of Vietnam graduated from IDA and soon is Asian Development Fund (ADF) of the Asian Development Bank (ADB) (expected to be in 2019), ODA is reducing and soon only the World Bank’s IBRD is available. The Prime Minister assigned Ministry of Planning & Investment to work with related ministries in update and adjust the use of loans from sponsors, which will be submitted to the Prime Minister in the fourth quarter of 2017 in narrowing priority fields and not using these financial sources on fields where private sectors are interested in.
The Prime Minister suggested the World Bank to support Ministry of Planning & Investment in this issue and develop appropriate strategy in the current context, in turn supports Vietnam to solve challenges for developments, which have been acknowledged in the Vietnam 2035 report by the two sides; ensure the public debt within limit; utilizing efficiently experiences and global expertise of the World Bank to support the development of Vietnam.
In order to support administrative agencies and local government to access the preferential loans right after Vietnam’s graduation from IDA, the Prime Minister requested the World Bank to look for financial grant for the country. On priority fields for the loan, the Prime Minister requested Mr. Dione to discuss with Ministry of Planning & Investment, as well as other ministries; at the same time suggest some aspects, such as climate changes, infrastructure development, water source, training human resources, creative innovation, hi-tech agriculture. The Prime Minister stressed “which fields the private sector has advantage of, we will not intervene”.
On mobilizing financial resources for large scale infrastructure development project, the Prime Minister requested the World bank to support Ministry of Planning & Investment, Ministry of Transport and related ministries to build the legal framework, which is aimed to mobilize investment fund under the form of Public – Private – Partnership (PPP).
Mr. Dione expressed his thanks to the cooperation of Vietnam, as such, the World Bank is reviewing solutions to mobilize additional financial aids for Vietnam. He also hope to increase cooperation between the World Bank and Vietnam, especially in ODA projects, or projects financed by preferential loans.
Mr. Ousmane Dione congratulated Vietnam’s achievements in recent years and said “some reforms initiated by the Prime Minister and the Government including tax reform and measures against bad debts are essential and important to Vietnam”. The World Bank is willing to accompany and cooperate with Vietnam’s administrative agencies in realizing these necessary reforms. Mr. Dione proposed Vietnam to review and consider the establishment of a reform coordinator agency similar to some countries. “I am look forward to listening to the Prime Minister’s suggestions on our cooperation plan in the future” – Mr. Dione said and wanted to know which fields Vietnam is in need of the financial aid.
The Prime Minister said, in recent years, Official Development Assistance (ODA) and concessional loan from the World Bank have significantly contributed to the socio-economic development of Vietnam. The Vietnam’s government pays great attention to the efficient use of these loans. The National Steering Committee for ODA and preferential loans have frequent meetings with ministries and agencies to timely remove barriers, and focuses on solutions to use the loan efficiently.
In the context of Vietnam graduated from IDA and soon is Asian Development Fund (ADF) of the Asian Development Bank (ADB) (expected to be in 2019), ODA is reducing and soon only the World Bank’s IBRD is available. The Prime Minister assigned Ministry of Planning & Investment to work with related ministries in update and adjust the use of loans from sponsors, which will be submitted to the Prime Minister in the fourth quarter of 2017 in narrowing priority fields and not using these financial sources on fields where private sectors are interested in.
The Prime Minister suggested the World Bank to support Ministry of Planning & Investment in this issue and develop appropriate strategy in the current context, in turn supports Vietnam to solve challenges for developments, which have been acknowledged in the Vietnam 2035 report by the two sides; ensure the public debt within limit; utilizing efficiently experiences and global expertise of the World Bank to support the development of Vietnam.
In order to support administrative agencies and local government to access the preferential loans right after Vietnam’s graduation from IDA, the Prime Minister requested the World Bank to look for financial grant for the country. On priority fields for the loan, the Prime Minister requested Mr. Dione to discuss with Ministry of Planning & Investment, as well as other ministries; at the same time suggest some aspects, such as climate changes, infrastructure development, water source, training human resources, creative innovation, hi-tech agriculture. The Prime Minister stressed “which fields the private sector has advantage of, we will not intervene”.
On mobilizing financial resources for large scale infrastructure development project, the Prime Minister requested the World bank to support Ministry of Planning & Investment, Ministry of Transport and related ministries to build the legal framework, which is aimed to mobilize investment fund under the form of Public – Private – Partnership (PPP).
Mr. Dione expressed his thanks to the cooperation of Vietnam, as such, the World Bank is reviewing solutions to mobilize additional financial aids for Vietnam. He also hope to increase cooperation between the World Bank and Vietnam, especially in ODA projects, or projects financed by preferential loans.
