$100 million in additional credit approved by WB for project in six poor provinces in north-west region.
The Board of Directors at the World Bank (WB) agreed on February 27 to more than $100 million being lent to a project to improve the living standards of the poor in six provinces in Vietnam’s north-west, the country’s poorest region.
The credit is aimed at contributing to the efforts of the Vietnamese Government in Hoa Binh, Dien Bien, Lai Chau, Lao Cai and Yen Bai provinces.
“We are pleased that the Board of Directors has approved the additional credit,” the National Director of the WB in Vietnam said. The region the project targets has the highest incidence of poverty and its beneficiaries are mostly poor ethnic minorities. The WB would therefore like to share some of the effort in alleviating poverty with the government via accessing the project and is willing to cooperate with the government to expand its success.
The additional finance will contribute to efforts to cut poverty by improving the capacity of the local administration and local community and enhancing the ability to approach investment to raise labor productivity. Moreover, the project would improve the ability to make plans for the community investment and boost market links and business innovation for beneficiaries.
The project will then be expanded to more districts and additional communities throughout the country.
By strengthening the ability to make plans to develop local socio economies, the project will accelerate community participation in the national program of poverty alleviation. At the center of the project is enhancing partnerships between farmers and agricultural enterprises.
The Vietnamese Government will also put $10 million towards the project.