At the launching workshop on the Country Partnership Framework (CPF) with Vietnam on September 14, the World Bank (WB) announced its US$4 billion preferential loans for Vietnam during the financial year (FY)18-20.
In term of the fund, resources will be financed for the government’s midterm investment plan. Vietnam will get preferential loan from the International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD) of US$2.2 billion and US$1.8 billion for period 2018-2020, respectively.
IDA is the world’s largest multilateral source of concessional financing for the poorest countries,whilst IBRD is a global development cooperative owned by its 189 member countries.
“We will mobilize all partners and institutions, as well as available instruments to diversify the source, transform the loan strategy, policy discussion, analyzing and consulting, or guarantee,” World Bank Country Director in Vietnam - Ousmane Dione said.
Preferential loans are one of the important external sources to promote investments, especially in infrastructure, for the socio-economic development of Vietnam in recent years. Especially, the private sector which will be provided more foreign preferential loans will have more opportunities in accessing capital sources to develop.
“Over the period of this renewed partnership, the World Bank Group’s engagement in Vietnam will focus on key reform and development areas that may have the transformative impact. And we will mobilize all our institutions including WB, the International Financial Corporation (IFC) and The Multilateral Investment Guarantee Agency (MIGA), and the instruments and products we have to effect transformative change, be they lending, policy dialogue, analytical and advisory work and/or guarantees,” said Ousmane Dione.
In order to realize the PCF in the upcoming time, the government of Vietnam and the financial agencies must create a legal frame and financial conditions as well as create other favorable conditions for enterprises to get access to these financial sources.
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