Vietnam and the World Bank to Collaborate on Higher Economic Growth

July 23, 2014 Posted by Vietnam Briefing Reading Time: 3 minutes

HANOI – Vietnam and the World Bank Group have announced an agreement to conduct a joint study which will recommend policy actions aimed at increasing the rate of economic growth in Vietnam over the coming years.

The scope of the study is to identify the changes Vietnam needs to make in order to ensure sustainable and inclusive economic growth so that it can join the ranks of high-income countries. The goal of the study is to help put the country on the road to becoming a thoroughly modern and industrialized economy within a generation. According to the agreement, the study will be completed within one year.

World Bank group president, Jim Yong Kim, stated at the announcement of the study that “[the World Bank] look[s] forward to working closely with Vietnam on this joint report and sharing our global experience to help it realize its potential of becoming a high-income country in the decades ahead. Vietnam’s leadership can improve the lives of the Vietnamese people even more if they improve the efficiency and competitiveness of its economy and create the conditions for the private sector to become a driving force for job creation, innovation and high-productivity growth that benefits everyone.”

The study will also examine the policies and actions Vietnam will need to enact in order to build economic, political and social sustainability – these include reforming its institutions, creating more equality and creating more opportunities for all people. In order to attract more foreign and domestic private investment, Vietnam will need to make a series of changes to its trade policies, as well as improve its business and investment climate.

Vietnamese Prime Minister, Nguyen Tan Dung, has expressed strong support for the study, stating that “We hope this study will support our strategy to improve people’s lives even more by offering guidance on how to accelerate our economic restructuring and institutional reforms so we can boost growth and provide additional support to the poor.”

In addition to the announcement of the study, the leaders signed credit agreements for five new projects worth a total US$876 million. In addition, Mr. Kim announced that, over the next three years, the World Bank Group will provide Vietnam with over US$3.8 billion in concessional financing through the International Development Association (IDA), the World Bank’s fund for the poorest countries.

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