Ceremony of signing agreements between Vietnam and World Bank on strengthening capacity of competitiveness, climate change response and green growth, and water resource management

At the ceremony, SBV Governor Le Minh Hung stated, the signing of three projects are considered enormously important to Vietnam in the process of implementing the key reformative factors of economy, developing synchronous infrastructure and climate change response, poverty reduction and sustainable development. The SBV Governor strongly believed these programs and projects will be successfully performed in line with the assigned objectives.

Vietnam’s Third Economic Management and Competitiveness Development Policy Financing is concluding a series of three operations which reinforced key government steps to bolster financial sector stability, reform the state owned enterprises sector and create a better business environment. These reforms are at the aim of raising Vietnam’s competitiveness and medium growth potential. The series has served as the central platform for coordinated policy dialogue between the Government of Vietnam and several development partners, and has mobilized over USD 1 billion from the World Bank and other partners, in flexible budget support financing, helping to meet some of the government fiscal needs. This final operation provides a USD 150 million World Bank loan and USD 12 million co-financing grants, provided by the Governments of Switzerland and Canada.  

The Climate Change and Green Growth Development Policy Financing of USD 90 million supported by the WB is the first of a series of three projects to support climate change and green growth policy actions under the Vietnamese Government’s Support Program to Respond to Climate Change. Policy actions under this credit will help improve coastal zone resilience through integrated management, protection of water resources and greater water use efficiency, as well as coastal forest development. It also supports policies to improve air quality, energy efficiency and investments in renewable to reduce greenhouse gas emissions. These policies will be important for the achievement of Vietnam’s COP21 commitments.

The USD 50 million IDA Credit and USD 69 million IBRD Loan of Additional Financing for Urban Water Supply and Wastewater Project aims to support provision of  more household connections in 10 cities across Vietnam. It will also improve drainage system and build wastewater collection and treatment system in Di An Town of Binh Duong province to deliver better services to the 380,000 inhabitants of the town, and contribute to the control of water pollution into the surrounding Saigon and Dong Nai rivers.

 

 

Speaking at the signing ceremony, the World Bank Vice President for East Asia Pacific region Victoria Kwakwa recognized Vietnam’s determination to strengthen economic competitiveness and achieve a more green and sustainable development path. The World Bank is pleased to support the achievement of these priorities through the four projects that the two sides have signed.

After the signing ceremony, the Prime Minister of the Socialist Republic of Vietnam Nguyen Xuan Phuc was on behalf of the Communist party of Vietnam, the Government of Vietnam to award Friendship Order conferred by President of the Socialist Republic of Viet Nam; The SBV Governor Le Minh Hung awarded Commemorative Medal for the exceptional contribution to development of Vietnam Banking system” to Ms Victoria Kwakwa, the World Bank Vice President for East Asia Pacific region to acknowledge her valuable contributions to the process of upgrading the relationship between Vietnam and the World Bank from cooperative relation to partner relation, and developing economy and society of Vietnam in general and banking industry in particular.

 

Nguyen Giang