The Asian Development Bank and the Vietnamese government signed two loan agreements on Friday worth US$100 million to assist Vietnam in improving its business environment and financial sector.
These loans recognize achievements that Vietnam has made in improving the business environment, particularly for small- and medium-sized enterprises (SMEs) and in deepening the financial sector, the Manila-based bank said in a statement.
ADB said SME and private sector development is a key pillar of Vietmam's efforts to sustain high economic growth.
It has contributed significantly in creating jobs for about 1.7 million young workers entering the labor market annually in Vietnam.
"Development of SMEs is key for private sector development in Vietnam", said Ayumi Konishi, ADB Country Director for Vietnam.
"We would like to see creation of more and better jobs, and the development of supporting industries comprised of SMEs through better macroeconomic, legal and administrative framework, strengthened competition regime, and SMEs' better access to finance."
With regard to the financial sector, the bank said the reform measures agreed to by the two sides will help to bring the regulatory environment for capital markets up to international standards, "with improved information disclosure, and a stronger framework for issuing securities."
"These measures will strengthen market transparency, corporate governance and risk management capacity of institutions, and also support the efforts of the government to limit the scope of unregulated markets for unlisted securities," said Konishi.