WB to Provide $200 million for Viet Nam's Rural Development

The World Bank (WB) will provide a 200 million USD loan to Vietnam to help it carry out the Rural Finance Project 3, which has been designed to develop the country’s rural economy.

The Governor of the State Bank of Vietnam (SBV) Nguyen Van Giau and WB’s Acting Country Director in Vietnam Martin Rama signed a loan agreement in Hanoi on Nov. 14.

The project has a total investment capital of US $279.29 million, including US $79.29 million sourced from the Government of Vietnam. It will target almost all of the localities across the country, with the exception of the major cities of Hanoi , Hai Phong, Da Nang and Ho Chi Minh City .

The five-year project, which begins in December 2008, aims to promote economic development, hunger eradication and poverty reduction by improving private enterprises and householders’ access to financial sources.

It will also increase the capacity of financial institutions in rural areas to help them supply better services, leading to the development of a sustainable financial system in these regions.

As many as 90,000 private enterprises and 20,000 households are expected to benefit from the project, while 150,000 new jobs will be created for local workers.

SBV’s Governor Nguyen Van Giau said that the project is one of a series of rural finance projects funded by the WB. It follows a 12-years period of successful cooperation between Vietnam and the WB in an effort to develop agriculture and rural areas and strengthen the financial systems in these areas, he said.

The WB has previously channelled a total of US $348 million into two rural finance projects in Vietnam.

VNA

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