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Vietnam Today

WB endorses new Country Partnership Framework

Released at: 16:00, 01/06/2017

WB endorses new Country Partnership Framework

CPF to accompany Vietnam in consolidating development achievements and realizing ambitious growth and development targets.

by Linh San

The World Bank (WB)’s Board of Executive Directors has endorsed a new Country Partnership Framework (CPF) with Vietnam. The CPF outlines continued strong World Bank Group (WBG) engagement in Vietnam, accompanying the country in consolidating its development achievements and realizing the ambitious growth and development targets set.

“Vietnam continues to strive for more - higher growth, more advanced industrialization, and a better quality of life for all of its citizens,” said Mr. Ousmane Dione, WB Country Director for Vietnam. “Vietnam’s growth trajectory is proof of the country’s commitment to excellence, but meeting these ambitions will require a fine-tuning of both approach and implementation.”

The new partnership framework aligns with Vietnam’s five-year Socio-Economic Development Plan for 2016-2020 and its goals of balancing economic prosperity with environmental sustainability, of promoting equity, and of strengthening the capacity and accountability of State agencies.

It also accompanies Vietnam as it transitions further into middle-income country status and graduates from the International Development Association - the WB’s fund for low-income countries.

The new partnership framework builds on the WBG’s strong engagement in Vietnam, ensures complementarity with other partners, and leverages further support to the country, through mobilizing commercial finance and private sector engagement.

Four areas are prioritized: inclusive growth and private sector participation; investment in people and knowledge; environmental sustainability and resilience; and good governance. Implementation of the CPF will involve substantial engagement at the sub-national level, the testing and application of multisector and spatial approaches, and addressing as well as integrating gender aspects through analytical support, policy dialogue, lending, and strategic partnerships. 

The CPF - prepared based on analysis contained in the Vietnam 2035: Toward Prosperity, Creativity, Equity, and Democracy and the 2016 Vietnam Systematic Country Diagnostic reports - introduces a number of strategic shifts.

“Over the period of this renewed partnership, the WBG’s engagement in Vietnam will focus on key reform and development areas that may have transformative impact,” said Mr. Dione. “And we will mobilize all our institutions - the World Bank, the IFC, and MIGA - and the instruments and products we have to effect transformative change, be they lending, policy dialogue, analytical and advisory work, and/or guarantees.”

Throughout the CPF period, the International Finance Corporation (IFC) will also leverage its investment and advisory services and mobilize long-term financing for investments that have strong socioeconomic benefits and support the development of Vietnam’s capital markets and other private finance. To help boost the country’s economic competitiveness and advance private sector development, the IFC will continue to attract international investors to key sectors of finance, infrastructure, manufacturing, and energy, combining global expertise with local knowledge and leveraging investment returns and social benefits.

Through its traditional political risk insurance and credit enhancement products, the Multilateral Investment Guarantee Agency (MIGA) will complement WB lending and IFC engagement by mobilizing private investment and supporting commercial borrowing by the government and potentially also by State-owned enterprises. Wherever possible, MIGA will seek to support projects alongside other WBG entities or in sectors where the WBG is already active.

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