The World Bank’s Board of Directors has approved nearly US$60 million in funding for a Vietnam project to renovate the country’s finance sector, WB announced late last week.
The funding comes from the International Development Association (IDA), the World Bank’s concessional arm, for Vietnam’s Finance Sector Modernization and Information Management System Project, according to the announcement.
The funds will assist the State Bank of Vietnam, the Credit Information Center, and the Deposit Insurance of Vietnam to reform and modernize the sector by improving delivery of their main functions in line with international standards.
The IDA credit will finance technical assistance for their functional strengthening, capacity building, and business process re-engineering. And a major portion of the US$60 million will be used to build an information and communications technology platform to support the State Bank of Vietnam’s evolving role as a central bank, the WB statement wrote.
“The project is aimed at contributing to the achievement of the Government's strategic goal of a stable and sound financial sector in Vietnam,” Ms. Xiaofeng Hua of the World Bank’s East Asia and Pacific Region, said in the announcement.
She added, “This effort is critical in ensuring Vietnam’s sustainable economic growth and continued progress in poverty reduction, especially at a time of global financial turbulence.”