Minister of Planning and Investment Bui Quang Vinh worked with Axel van Trotsenburg, Vice President of the World Bank for East Asia and Pacific, in Hanoi on May 7 to discuss orientations for Vietnam’s socio-economic development and the WB’s future support to the country.

Addressing the meeting, Vinh highly valued the bank’s assistance to Vietnam in the fields of infrastructure construction and in dealing with social issues.

Vietnam will gradually reduce the proportion of loans from the International Development Association (IDA), which provides the largest interest free assistance in the world, and receive more from the International Bank for Reconstruction and Development (IBRD) at a low interest rate, he said.

The Vietnamese Minister affirmed the need for Vietnam to maintain preferential loans, adding that the country should have suitable access to move from IDA to IBRD loans to achieve sustainable development and consolidate social achievements, particularly in poverty reduction.

According to Minister Vinh, Vietnam is building a system of policies and institutions to use these loans effectively. In the next fiscal year, the country will coordinate with sponsors to balance infrastructure and social welfare projects.

Trotsenburg said that Vietnam is the second beneficiary of IDA assistance after India, and its use of this assistance has gained many positive results, especially in poverty reduction.

Vietnam will continue benefiting from IDA loans, but needs a clear orientation in the lending process, he said, noting that the country should have close connections with other regional countries to attract more IDA capital and pay more attention to IDA capital disbursement as it will be advantageous in IDA lending negotiations.-VNA