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World Bank boosts support for Vietnam's growth and sustainability

EditorAmbhini Aishwarya
Published 15/11/2023, 11:44

The World Bank has announced a comprehensive plan to support Vietnam's rapid economic expansion and sustainable development initiatives. This strategic move aims to propel the Southeast Asian nation towards high-income status by 2045, aligning with its socio-economic growth targets.

On Monday, during a high-level meeting, Vietnamese Prime Minister Pham Minh Chinh met with World Bank Regional Vice President Victoria Kwakwa and International Finance Corporation officials. They discussed the pivotal role these institutions have played in Vietnam's development through their policy advice and financial assistance. Specifically, they focused on Official Development Assistance (ODA) projects, preferential loans, and identifying key projects that offer the best interest rates for government-leader-highlighted areas.

Prime Minister Chinh called for expanded cooperation and public-private partnerships, emphasizing the need for the World Bank's low-interest funds to be directed toward significant projects. These projects include those in transport, urban development, digital transformation, energy, and climate change response strategies in the Mekong Delta. He also pointed out emerging high-tech fields such as semiconductors, clean energy, and electric vehicles as areas of interest.

The World Bank Regional Vice President affirmed the institution's commitment to supporting Vietnam's ambitious goal of reaching high-income status by 2045. She praised Vietnam for its strong commitment to sustainable development and its efforts to attract top-tier investors.

The announcement follows a dialogue that occurred on Sunday at the APEC Finance Ministers' Meeting in San Francisco where Ho Duc Phoc from Vietnam's Ministry of Finance highlighted the need for increased loan support from the World Bank. These funds are earmarked for extensive projects across various sectors such as infrastructure development, renewable energy sources, smart agriculture technologies, greenhouse gas emission reduction initiatives, climate change mitigation in the Mekong Delta region, and advancing digital transformation.

The Vietnamese economy is on an upward trajectory with growth projections of 4.7% in 2023, 5.4% in 2024, and 6% in 2025. The World Bank's plan to provide loans specifically for renewable energy projects, climate change response initiatives in the Mekong Delta region, and digital transformation efforts is expected to play a crucial role in achieving these targets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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