The World Bank on June 24 approved four credits totaling US$456.5 million in support of Vietnam’s development efforts.
This brings the total of World Bank lending to Vietnam this fiscal year to US$2.13 billion, a record figure.
The credits are all provided by the International Development Association (IDA) – the part of the World Bank that helps the world’s poorest countries.
The project aims to set up and pilot a new policy framework for the governance, financing and quality assurance of one new model university. This will help Vietnam develop a model for a higher education system that is innovative and of high quality as well as geared towards developing marketable skills for young people entering the labor market.
The credits approved by the World Bank’s Board also includes the 9th Poverty Reduction Support Credit (US$150 million), which is the fourth in a five-year cycle aimed at supporting the implementation of the Social – Economic Development Plan. This credit aims to continue the reforms needed to transform Vietnam from a transition economy to a middle-income country.
A sum of US$100 million will be used to assist Vietnamese Government agencies with capacity building to plan and prepare public investments efficiently and ensure international quality standards.
A project preparation facility will be established that can be drawn upon to undertake, for example, feasibility studies, detailed designs, and procurement for projects across all development sectors.
And finally, US$26.5 million, approved on July 23, will be used to provide additional financing for the System Efficiency Improvement, Equitization and Renewable Project.