Jun 30, 2021 / 13:10

World Bank approves over US$320 million to support Vietnam’s recovery efforts

The support aims to improve urban management and promote a recovery, which is inclusive, digitally transformative, and sustainable.

The World Bank (WB) on June 30 affirmed its support to Vietnam’s recovery efforts by approving two development policy operations (DPO), totaling US$321.5 million.

These two operations are designed to support the Vietnamese Government in its efforts to improve urban management and promote a recovery that is inclusive, digitally transformative, and sustainable.

“The Covid-19 pandemic has intensified the need for Vietnam to accelerate reforms required to achieve its goal of becoming a high-income economy by 2045,” said Carolyn Turk, WB Country Director for Vietnam.

“The country must not only manage the immediate effects associated with the pandemic but also build the foundations for a green recovery in the longer term,” stressed Carolyn Turk.

 Vietnam promotes inclusive recovery, basing on digital transformation and sustainability. Photo: Duong Lam

The first operation, worth US$221.5 million, focuses on policy actions that will make the recovery more inclusive, through support to childcare, mobile money, e-governance, and renewable energy.

Efforts to develop e-governance will help facilitate a digitally-transformative recovery in the country and will lead to the provision of more efficient and comprehensive public services for Vietnamese citizens and firms.

Besides, increased uptake of renewable energy will assist the country in prioritizing solar-power projects as greener, less carbon-intensive alternatives to coal.

The second operation, in the amount of US$100 million, will aid Vietnam’s biggest business hub, Ho Chi Minh City, in promoting the use of integrated and transparent spatial information for urban management.

This activity is designed to strengthen the management of public assets and liabilities, while simultaneously enhancing the delivery of priority municipal services - three central elements for efficiently governing a modern city.

Furthermore, this operation will help the city mitigate climate vulnerabilities, through improved transparency on climate-informed land zoning, expanded drainage coverage, and the expected modal shift from private transport to less carbon-intensive public transport.

It will also promote gender equity by encouraging the use of public transport by women and girls through better connectivity and personal safety.

Financing for the national DPO comes from the International Development Association (IDA) and financing for the Ho Chi Minh City DPO comes from the International Bank for Reconstruction and Development (IBRD).