World Bank gives Viet Nam backing

HCM CITY (VNS) — The World Bank on Tuesday approved the first Economic Management and Competitiveness Credit for Viet Nam, EMCC 1, to help the country achieve higher productivity and competitiveness.

The EMCC 1, the first of a series of three operations, provides US$250 million in concessional finance to support reforms in seven policy areas.

These include financial sector; fiscal policy; public administration and accountability; state enterprise management; public investment management; efficiency of the business environment; 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 Viet Nam.

“I hope that the EMCC series will provide a platform for deepening and coordinating dialogue between development partners and the Government of Viet Nam with a view to helping Viet Nam [make smooth] transition to a new economic growth model, which targets competitiveness and the quality of growth.”

Macroeconomic stability is a major priority for competitiveness in Viet Nam, and a core objective of EMCC.

The EMCC will help monitor macroeconomic policies and ensure that it supports the government’s efforts toward stability.

In addition, the EMCC prioritises government efforts to streamline administrative procedures and strengthen fiscal discipline because they are critical to productivity and competitiveness. — VNS