Illustrative image (Photo: X-Five Photography) The technical assistance will provide policy advice, assistin infrastructure project preparation, and strengthen institutional capacity toenhance sustainable economic growth.
The financing includes a 2.7 million USD grant from theGovernment of Canada and a 1.9 million USD grant from the Government ofAustralia, both to be administered by the ADB.
“Vietnam has achieved impressive socio-economic developmentover the past three decades by maintaining high economic growth gained from itsstructural reforms,” said ADB Principal Private Sector Development SpecialistDonald Lambert. “To meet the targets of its upcoming Socio-Economic DevelopmentStrategy 2021-2030, maintain growth rate of 6-7 percent, and achieve theSustainable Development Goals, Vietnam will need to further accelerate economicreforms, expanding the role of the private sector in driving the country’sdevelopment.”
Between 2011 and 2020, Vietnam invested an estimated 117 billionUSD in infrastructure. However, the country’s infrastructure remainsunderdeveloped compared to its regional peers. The country will need tomobilise an estimated 237 billion USD between 2021 and 2030 to close theinfrastructure deficit, which is 49 billion USD more than the historicalspending trajectory.
Recognising the potential of the private sector to helpclose the infrastructure deficit, Vietnam’s Socio-Economic Development Strategy2021-2030 prioritises removing barriers to open competition and developing asupportive environment to increase the private sector’s contribution to theeconomy, including a larger role in infrastructure development.
ADB’s new technical assistance will help by deliveringpolicy advice on PPP and private sector development, piloting projects thatembed the G20 Quality Infrastructure Investment principles, and strengtheningPPP and private sector development institutional capacities.
Recently, ADB Country Director Andrew Jeffries said that Vietnam has sufficient conditions to achieve the twin targets of curbing the COVID-19 pandemic and securing economic growth in 2021.
Talking to the Vietnam News Agency about the recovery capability of the country’s economy amid the fourth wave of COVID-19 infections, he expressed his optimism about the country’s economic outlook, given the positive economic statistics recorded in April and May.
In the first five months of 2021, the Vietnamese economy continued to post encouraging signs in export, foreign investment attraction, FDI disbursement, and retail sales.
However, Jeffries also pointed out that risks have appeared when the pandemic resurged in April while the implementation of the COVID-19 vaccination plan has been delayed.
He noted that the ongoing fourth wave of infections has affected not only big cities like Hanoi and Ho Chi Minh City but also industrial parks in Bac Giang and Bac Ninh provinces, which are the locations of manufacturing activities by many important links in the electronics supply chain.
To realise the target of becoming an upper-middle-income country by 2030, Vietnam needs to sustain an annual economic growth rate of over 7 percent, the ADB official remarked.
The first and foremost condition to obtain such growth is that the private sector in the industry and services sectors must operate dynamically, he said, calling for conditions to be created for them to access financial, land, and technological sources and enhance corporate governance skills.
It is also necessary to rationalise business procedures for private firms and prioritise digital transformation, according to him.
Jeffries noted that Vietnam’s economic growth and development outlook is closely associated with the capability to curb the spread of the coronavirus.
The successful containment of the pandemic is the decisive factor in the 2021 growth, he went on, expressing his belief that the Vietnamese Government and people will be able to control the pandemic thanks to the important experiences gained from the previous outbreaks.
However, he also warned that unexpected outbreaks could continue to happen and impact part of the workforce, especially in industrial parks.
The only way to help push back the pandemic, ensure long-term safety for people, and create conditions for economic development is to step up COVID-19 vaccination, he added./.
VNA
