Categories: Asia PacificFinance

World Bank Continues Support to Improve Vietnam’s Competitiveness with US$250 Million Credit

Hanoi, Vietnam

The World Bank’s Board of Executive Directors today approved a US$250 million credit to the Government of Vietnam for the Second Economic Management and Competitiveness development policy operation (EMCC-2) to support the Government’s economic management reforms to enhance the country’s competitiveness.

This second in a series of three such operations is focused specifically on three elements of competitiveness:

(i)    strengthening financial sector governance and fiscal management for macroeconomic stability;
(ii)    strengthening public administration, SOE management, and public investment management for more transparency, efficiency and accountability in the public sector; and
(iii)    strengthening tax and procurement policies and reducing administrative burdens to create a more enabling business environment.

“This program supports reforms that should help address some of the binding constraints to private sector investment.  Promoting a stronger role for the private sector in the economy is critical for Vietnam’s future growth.” says Victoria Kwakwa, the World Bank Country Director for Vietnam.

The first EMCC supported a number of pieces of legislation and government decisions to promote reforms including Prime Ministerial decisions to restructure General Corporations and State Economic Groups; strengthen supervision in the banking sector; and strengthen the institutional framework for debt management. The Laws on Tax Administration and Anti-Corruption were amended to introduce new provisions aimed at improving public administration.

The EMCC-2 builds on these to promote increased foreign participation in the banking sector and adopt a plan to address NPLs; strengthen medium-term debt management and improve the efficiency of public financial management; promote restructuring of State Economic Groups and improve SOE transparency; and strengthen the legal framework for public procurement, value-added tax and corporate income tax.

CFI

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