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Vietnam Today

Vietnam & ADB deepen partnership

Released at: 15:38, 11/10/2016

Vietnam & ADB deepen partnership

Photo: Duy Anh

New partnership strategy in support of Vietnam's Socio-Economic Development Plan 2016-2020.

by Duy Anh

The Asia Development Bank (ADB) has approved a new partnership strategy for Vietnam to support the country’s recently launched Socio-Economic Development Plan (SEDP) 2016-2020 by fostering more inclusive and environmentally-sustainable growth.

“The Vietnam Country Partnership Strategy (CPS) 2016- 2020 will promote job creation and competitiveness to increase the inclusiveness of infrastructure and service delivery and improve environmental sustainability and climate change responses,” ADB Country Director for Vietnam, Mr. Eric Sidgwick, told a press conference on October 11 in Hanoi.

The CPS 2016-2020 was prepared against a backdrop of impressive economic and social gains in Vietnam. In particular, the CPS proposes maintaining sovereign lending at around $1 billion per annum between 2016-2019. Technical assistance and grants will be $5-7 million per annum. Co-financing from development partners and climate funds will be $1.4 billion while at the same time ADB will mobilize increasing support from global climate funds.

Mr. Sidgwick stressed that Vietnam is starting to face new and more complex challenges. Growth is creating environmental damage and the country is highly exposed to climate change. Previously rapid growth in the working age population is starting to fall and pockets of poverty still remain, particularly in remote and rural regions.

“Sharing our knowledge will also play a key role in the new CPS, with a particular focus on strengthening the business enabling environment, promoting fiscal transparency and public accountability, and fostering integrated and green urban infrastructure,” he added.

The CPS notes that Vietnam’s transition from lower-middle income status to middle-income status requires improvements in the efficiency of public expenditure and greater private sector investment.

ADB will promote both and help leverage private sector investment through public-private partnerships to improve efficiency and service delivery to citizens and gain access to new expertise and technology. It will support sustainable natural resource use as well as climate change adaptation and mitigation measures to respond to the heightened risks facing the country.

Other than providing sovereign lending of around $1 billion per annum, ADB is also committed to adopting measures to improve the readiness and quality of projects being supported as well as the implementation of existing projects. The bank is ready to scale-up its assistance and provide additional resources upon the government’s request.

In the 2011-2015 period a total of $5.3 billion in loans and $240 million in grants and technical assistance were provided by ADB to the Vietnamese Government, with the primary focus on transport, water and urban areas, energy, and public sector management. Co-financing of $3.5 billion in loans and $171 million in grants were also provided to the government during the period. In 2015 alone, $1.03 billion in loans were approved.

Based in Manila, the ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally-sustainable growth and regional integration. Established in 1966, it will mark 50 years of development partnerships in the region and 20 years of its partnership with Vietnam this year. It is owned by 67 members, 48 of which are from the region. In 2015 its assistance totaled $27.2 billion, including co-financing of $10.7 billion.

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