12:28 (GMT +7) - Sunday 25/08/2019

Vietnam Today

PM meets ADB President

Released at: 11:24, 01/07/2019

PM meets ADB President

Photo: ADB

Two hold talks on sidelines of G20 Leaders' Summit in Osaka.

by Linh San

Prime Minister Nguyen Xuan Phuc met Asian Development Bank (ADB) President Takehiko Nakao on June 29 on the sidelines of the G20 Leaders’ Summit in Osaka. They discussed Vietnam’s macroeconomic performance and the ADB’s continued engagement with the country. Macroeconomic performance has been solid in recent years, with real GDP growth at 6.7 per cent in the first half of 2019 and 7.1 per cent in 2018; the highest in more than a decade.

“Vietnam continues to demonstrate strong potential for sustaining high economic growth, given its prudent fiscal management, stable inflation, healthy current account balance, and strong FDI,” said Mr. Nakao. “It is also positioning itself effectively in the changing landscape of regional and global value chains.”

He commended the structural reforms being implemented by the government, including the establishment of the Commission for the Management of State Capital as a key part of the government’s State-owned enterprise reforms.

The ADB has been among the largest development partners supporting Vietnam for the last several years, operating through project loans in transport, water supply and sanitation, energy, agriculture, and education. It has also provided policy-based loans promoting reforms in public expenditure, the financial sector, and health. It is assisting Vietnam’s regional cooperation and integration through the Greater Mekong Subregion (GMS) Economic Cooperation Program, including by supporting the implementation of the Hanoi Action Plan, which was endorsed at the 6th GMS Summit held in Vietnam’s capital in March 2018.

The ADB’s sovereign lending in 2018 was $689 million in concessional terms and it also committed $300 million in non-sovereign lending to support small and medium-sized enterprises (SMEs) and municipal waste-to-energy conversion.

Prime Minister Phuc expressed his appreciation of ADB’s support and noted that Vietnam will need continued support for infrastructure development as well as innovative financing solutions to attract greater private sector investments.

“The ADB stands ready to continue to provide strong support to Vietnam in the coming years in areas such as urban rapid transit systems, highway modernization, water supply and sanitation, and climate resilient urban and rural infrastructure,” Mr. Nakao said. “We will also extend our support to foster more public-private partnerships and continue our non-sovereign lending. The ADB’s capacity building work is helping improve the credit worthiness of selected SOEs.”

The ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.

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