The World Bank approved Tuesday a US$250-million concessional loan for Vietnam to help the country reform its economic management to improve productivity and competitiveness.
The first Economic Management and Competitiveness Credit is expected to help reform the financial sector, fiscal policy, public administration, management of state firms and public investment, and efficiency, equity and transparency of the business environment, the bank said in a press release.
Victoria Kwakwa, its Country Director for Vietnam, said the credit series, to be disbursed in the next three years, is expected to improve dialogue and coordination between the Vietnamese government and development partners.
She said the program would help monitor macroeconomic policies, which play a major role in guaranteeing competitiveness, and also focus on reforms of the state-owned and banking sectors.
Vietnam implemented major reforms in the late 1980s and early 1990s, known as the "doi moi" period, which contributed to large gains in competitiveness that spurred rapid growth and poverty reduction.
But the bank said the reform process has slowed down in recent years.
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