Vietnam, WB sign US$371 million to help Vietnam’s competitiveness, climate change response

The World Bank and the State Bank of Vietnam yesterday in Hanoi signed legal agreements for 3 projects, worth US$371 million in total, to support with economic competitiveness, climate change response and green growth, and water supply and waste water treatment.

The agreements were signed by Governor of the State Bank of Vietnam Le Minh Hung, the World Bank Vice President for East Asia Pacific region Victoria Kwakwa, and witnessed by Vietnam’s Prime Minister Nguyen Xuan Phuc

As per the agreement, WB will provide a US$150 million loan and US$12 million co-financing grants, provided by the Governments of Switzerland and Canada for Vietnam’s third economic Management and Competitiveness Development Policy Financing which concludes a series of three operations which reinforced key government steps to bolster financial sector stability, reform the SOE sector and create a better business climate. These reforms are critical to raise Vietnam’s competitiveness and medium growth potential.

The Climate Change and Green Growth Development Policy Financing of US$90 million is the first of a series of three operations to support climate change and green growth policy actions under the Vietnamese Government’s Support Program to Respond to Climate Change. Policy actions under this credit will help improve coastal zone resilience through integrated management, protection of water resources and greater water use efficiency, as well as coastal forest development.

It also supports policies to improve air quality, energy efficiency and investments in renewable to reduce greenhouse gas emissions. These policies will be important for the achievement of Vietnam’s COP21 commitments.

The US$50 million IDA Credit and US$69 million IBRD Loan of Additional Financing for Urban Water Supply and Wastewater Project aims to support provision of  more household connections in 10 cities across Vietnam. It will also improve drainage system and build wastewater collection and treatment system in Di An Town of the southern province of Binh Duong to deliver better services to the 380,000 inhabitants of the town, and contribute to the control of water pollution into the surrounding Saigon and Dong Nai rivers.

By Bao Minh – translated by Anh Quan

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