The Asian Development Bank will lend Vietnam nearly US$234 million to fund reforms to strengthen the country’s competitiveness and help deliver a sustainable urban transport system in Hanoi.
Tomoyuki Kimura, ADB's country director in Vietnam, has signed two loan agreements with Nguyen Van Binh, governor of the State Bank of Vietnam.
“Strengthened competitiveness will be critical for Vietnam to derive maximum benefits from a global recovery and the country’s continuing economic integration into the world economy,” Kimura said in a statement.
“ADB welcomes and fully supports the government's strong commitment to the ongoing economic restructuring and reform agenda which will allow the country to continue to successfully transform itself into a dynamic, competitive, and efficient market economy.”
The World Economic Forum’s Global Competitiveness Index for 2013-2014 showed Vietnam losing ground to rank 70 out of 148 countries, down one place from 2006-2007.
The country also ranked second-lowest among Southeast Asian countries.
The agreements signed include a $230 million policy loan for a program to support government reforms in six policy areas -- the financial sector, fiscal policy, public sector administration and accountability, state enterprise management, public investment management, and the business environment.
The second agreement is for a $4.2 million loan for a project to support the effectiveness and sustainability of another ADB-financed project, the Hanoi Metro Line 3 by improving access to stations and enhancing connectivity between the line and other modes of public and private transport.
The project will also strengthen urban transport policies and regulations, support the Hanoi urban transport master plan’s objectives of increasing the use of public transport and reducing dependency on private vehicles and promote inclusive, low-carbon transport and reduce greenhouse gas emissions and environmental pollution.