WB loan to support Vietnam’s economic recovery

Hanoi seen from above (Photo: VNA)

Hanoi (VNA) - The Vietnamese Government and the World Bank have signed an agreement for financing of 221.5 million USD to support Vietnam’s post-pandemic recovery through policy reforms aimed at improving financial inclusion and spurring greater environmental resilience.

“In the spirit of our long-term, trusted and productive partnership, we are proud to support Vietnam at the time when the economy is recovering from the biggest shock of the past decades and when so many uncertainties remain around the pandemic,” said World Bank Country Director for Vietnam Carolyn Turk. “I believe that the range of policy actions supported by this operation will not only create a strong foundation for the immediate recovery from the COVID-19 crisis but also benefit Vietnam in the longer run.”

According to the WB, the 221.5-million-USD credit is a budget support operation and comes in the form of concessional terms for a period of 30 years with a grace period of five years. It encourages policy reforms under two pillars.

World Bank Country Director for Vietnam Carolyn Turk (Photo: VNA)

The first supports an inclusive economic recovery by easing the tax burden on businesses, improving access to financial assistance for vulnerable groups, reducing gender gaps in the workplace, and promoting financial inclusion. The second pillar contributes to greening trade policies, accelerating the adoption of e-government, and increasing the uptake of renewable energy.

In its December 27 press release, the bank assessed that the Vietnamese government has moved quickly in recent months on the implementation of these reforms. The approval of mobile money licenses and the roll out of electronic invoice systems in the country’s largest municipalities are examples of this.

The credit is provided through the World Bank’s International Development Association (IDA), the bank’s concessional lending window for low-income countries./.

VNA