WB loan to support Vietnam’s economic recovery

Hanoi seen from above (Photo: VNA)

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

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

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

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

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

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

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

VNA