World Bank to Prioritize $4B Funding for Vietnam in Three Sectors in 2017-2020

The World Bank Group (WBG) held a workshop on September 14 in Hanoi to launch the Country Partnership Framework, which includes three major fields that the bank will help Vietnam develop and the over $4 billion funding it will provide now until 2020. Total International Development Association (IDA) funding from now until 2020 will be $2.2 billion while funding from International Bank for Reconstruction and Development (IBRD) will be $1.88 billion. Under the CPF, the proposed WBG framework for engagement in Vietnam focuses on: (1) enabling inclusive growth and private sector participation, (2) investing in people and knowledge, and (3) ensuring environmental sustainability and resilience. These areas cover 11 objectives, of which “promoting private sector and agri-business development” is a priority. WBG will support Vietnam to strengthen its private sector’s competitiveness, enhance the domestic sector’s integration into the global value chain, and improve the investment climate. This will include supporting the government to strengthen and implement a regulatory framework in favor of private sector development and a levelling of the playing field between private and state-owned enterprises (SOEs), as well as domestic and foreign investors. The program and funding announced on Sept 14 is only part of the Country Partnership Framework (CPF) with Vietnam for the 2017-2022 period. (Kinh Te Do Thi – Urban Economy; VIR Sept 14)