ADB approved $4.6 million assistance to boost private sector in Vietnam

The Asian Development Bank (ADB) has approved a $4.6 million technical assistance to help the Government of Vietnam to strengthen public–private partnerships (PPPs), private sector development, and state-owned enterprise reform.

The technical assistance will provide policy advice, assist in infrastructure project preparation, and strengthen institutional capacity to enhance sustainable economic growth.

ADB Principal private sector development specialist Donald Lambert stated that Vietnam has achieved impressive socio-economic development over the past three decades by maintaining high economic growth gained from its structural reforms.

To meet the targets of its upcoming Socio-Economic Development Strategy (SEDS) 2021 – 2030, maintain growth rate of 6 – 7 per cent, and achieve the Sustainable Development Goals, Vietnam will need to further accelerate economic reforms, expanding the role of the private sector in driving the country’s development.

Between 2011 and 2020, Vietnam invested an estimated $117 billion in infrastructure. However, its infrastructure remains underdeveloped compared to its regional peers.

The country will need to mobilize between 2021 and 2030 an estimated $237 billion to close the infrastructure deficit, which is $49 billion more than the historical spending trajectory.

Recognizing the potential of the private sector to help close the infrastructure deficit, Vietnam’s SEDS 2021 – 2030 prioritizes removing barriers to open competition and developing a supportive environment to increase the private sector’s contribution to the economy, including a larger role in infrastructure development.

ADB’s new technical assistance will help by delivering policy advice on PPPs and private sector development, piloting projects that embed the G20 Quality Infrastructure Investment principles, and strengthening PPP and private sector development institutional capacities.