Illuatrative image (Source: VNA)

Hanoi (VNA) – The Asian Development Bank (ADB) in Vietnam, on October 11, released a new partnership strategy with the country, which aims to help Vietnam implement its Socio-Economic Development Plan for 2016–2020 through boosting inclusive and sustainable growth.

The Vietnam Country Partnership Strategy (CPS) for 2016-2020 proposes maintaining ADB lending to Vietnam at around 1 billion USD each year. ADB will also continue to provide between 5 and 7 million USD in technical assistance and grants to Vietnam during the period, while another 1.4 billion USD in co-financing from development partners and climate funds is in the pipeline.

ADB said it stands ready to scale up its assistance, and offer additional resources if requested by local Government.

Eric Sidgwick, ADB Country Director for Vietnam said at the October 11 press conference that the CPS was developed in the context of Vietnam’s impressive economic and social gains. Reaching the lower-middle income status in 2010, the country has recorded rapid progress in poverty alleviation, healthcare and education.

At the same time, Vietnam is facing new and more complex challenges. Growth comes with environmental damage and the country is highly vulnerable to the impact of climate change. The increase of the working age population has slowed. Pockets of poverty remain, particularly in remote and rural areas.

“To help the government address these challenges, ADB will support investments to achieve three key outcomes,” he said.

“These will be to promote job creation and competitiveness, to increase the inclusiveness of infrastructure and service delivery, and to improve environmental sustainability and climate change responses”, he elaborated.

Sidgwick also stressed that the CPS emphasised sharing knowledge with a focus on developing business climate, fiscal transparency, public accountability, as well as integrated and green urban infrastructure.

The CPS highlights that Vietnam’s transition from the lower-middle income to the middle-income status requires improvements in the efficiency of public expenditure and greater private sector investment. ADB will help leverage private sector investment through public–private partnerships, while supporting sustainable natural resource use, climate change adaptation and risk mitigation measures in the country.-VNA