The World Bank Board of Directors has approved the first Economic Management and Competitiveness Credit for Vietnam, EMCC 1, to help the country with economic management reforms for higher productivity and competitiveness.
The EMCC 1, the first of a series of three operations, provides $250 million concessional financing to support reforms in seven policy areas: financial sector; fiscal policy; public administration and accountability; state enterprise management; public investment management; efficiency of the business environment; and equity and transparency of the business environment.
Macroeconomic stability is a major priority for competitiveness in Vietnam, and a core objective of EMCC. The EMCC will help monitor macroeconomic policies and ensure that it supports the stabilization efforts of the government.
Public Investment Management, SOE and banking sector reforms are prominent themes under the program, in line with the government’s priorities for structural reforms. In addition, the EMCC prioritizes government efforts to streamline administrative procedures and strengthen fiscal discipline because they are critical to productivity and competitiveness.