The CPF for the 2017-2022 period with Vietnam aligns with Vietnam’s five-year Socio-Economic Development Plan and its goals of balancing economic prosperity with environmental sustainability, of promoting equity, strengthening the capacity and accountability of state agencies. It also accompanies Vietnam as its transitions further into the middle-income country status and graduates from the International Development Asociation (IDA), the WB’s fund for low-income countries.
“The WBG is honored to remain at Vietnam’s side as it strengthens its position as a successful middle-income country and lays out the foundation to advance to high-income status,” said Ousmane Dion, the WB’s Country Director to Vietnam.
According to the new partnership framework, four areas are prioritized, including inclusive growth and private sector engagement, investment in people and knowledge, environmental sustainability and resilience, and good governance. The implementation of CPF will involve substantial engagement at the sub-national level, the testing and application of multi-sector and spatial approaches and address as well as integrate gender aspects through analytical support, policy dialogue, lending, and strategic partnerships.
Throughout the CPF period, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) will financially support Vietnam mostly through the investment mobilization.
In the launching this morning, Ousmane Dione also highly expressed the importance of the private sector transition in Vietnam. The WBG will help create the market and discuss with the government of Vietnam the obstacles of the private sector in approaching the capital sources, promoting its development. Specifically, the WB has collaborated with Vietnam Prosperity Bank (VPBank) to invest US$25 million in small and medium sized enterprises, US$15 million of which has been disbursed.
Ousmane Dione highlighted the importance of CPF implementation and urged related agencies to closely collaborate to produce the best outcome. Vietnam will have to face challenges but it must transact them into opportunities, in the fields of agriculture, energy and education, for instance, to consolidate its development achievements and realize the ambitious growth and development targets set.
