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Vietnam Today

ADB grants Vietnam $234 million in two loans

Released at: 11:35, 12/02/2015

ADB grants Vietnam $234 million in two loans

Loans to support efforts in national competitiveness and Hanoi's urban railway.

by Doanh Doanh

The Asian Development Bank (ADB) and the Vietnamese Government have signed two loan agreements totaling nearly $234 million to support reforms to strengthen the country’s competiveness and to help deliver a sustainable urban transport system in Hanoi.

The agreements include a $230 million policy loan for the Improving Competitiveness Program, which will support the Economic Management Competitive Credit Program - a joint development partner budget support program aligned to the national reform priorities of the government. The program will 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 the Strengthening Sustainable Urban Transport for Hanoi Metro Line 3 Project, which has a total investment of $58.95 million. The project will support the effectiveness and sustainability of another ADB-financed project, the Hanoi Metro Rail System Project (Line 3: Nhon - Hanoi Railway Station), 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.

On behalf of the government, Governor of the State Bank of Vietnam Nguyen Van Binh signed the agreements with Mr. Tomoyuki Kimura, ADB Country Director for 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 global economy,” said Mr. Kimura. “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 shows Vietnam losing ground, with a ranking at 70 out of 148 countries; one place below its ranking in the 2006-2007 survey. It was also ranked the second-lowest among ASEAN countries.

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