Wed. May 22nd, 2024

The World Bank (WB) Board of Directors has approved the first Economic
Management and Competitiveness Credit for Vietnam (EMCC 1) to help the
country with economic management reforms for higher productivity and
competitiveness, according to a WB Vietnam press release on March 20.

The EMCC 1, the first of a series of three operations,
provides 250 million USD concessional financing to support reforms in
seven policy areas including the financial sector, fiscal policy, public
administration and accountability, state enterprise management, public
investment management, business environment efficiency, and equity and
transparency of the business environment.

“The EMCC follows on
from the successful Poverty Reduction Support Credit series, and aims
to address new challenges that will raise the efficiency and
competitiveness of the Vietnamese economy”, said Victoria Kwakwa, the
World Bank Country Director for Vietnam.

She also
expressed her hope that the EMCC series will provide a platform for
deepening and coordinating dialogue between development partners and the
Government of Vietnam with a view to helping Vietnam transit to a
new economic growth model, which targets competitiveness and the quality
of growth.

The EMCC will help monitor macroeconomic
policies and ensure that it supports the stabilisation efforts of the
Government. Public Investment Management, SOE and banking sector reforms
are prominent themes under the programme, in line with the Government’s
priorities for structural reforms.

In addition, the EMCC
prioritises Government efforts to streamline administrative procedures
and strengthen fiscal discipline, critical to productivity and
competitiveness.

Vietnam implemented major reforms in
the early 1990s, which contributed to large gains in competitiveness
that spurred rapid growth and poverty reduction. However, the reform
process has slowed down in recent years. The EMCC is expected to support
the implementation of this reform programme over the next three years.-VNA

By vivian