PM Phuc seeks WB help for economic restructuring
Prime Minister Nguyen Xuan Phuc and World Bank CEO Kristalina Georgieva pose for photographers at the Government Office in Hanoi on March 23 - PHOTO: VGP
HANOI – Prime Minister Nguyen Xuan Phuc, speaking at a meeting in Hanoi on March 23 with World Bank CEO Kristalina Georgieva, said Vietnam needed assistance from the global lender in macro-economic stabilization and economic restructuring.
He said his Government would center on restructuring public investment, State-owned enterprises and the banking system. “Vietnam has huge needs for investment. In addition to aid from IDA (International Development Association of the WB), Vietnam is looking forward to receiving assistance from other organizations under the World Bank Group (the International Bank for Reconstruction and Development (IBRD), the Multilateral Investment Guarantee Agency (MIGA), and the International Finance Corporation (IFC).”
Vietnam commits to effectively use aid from the WB and the international donor community as a whole, he stressed, expressing appreciation of the WB’s role in Vietnam’s socio-economic development process, especially in the fight against poverty.
The next five years will be crucial for the country, he told the CEO of the WB, as the nation will spare no effort to build a solid institutional foundation to realize its development orientations and strategies.
The key objectives will be to stabilize the macro economy, implement strategic breakthroughs, restructure the economy using a new growth model, guarantee social security, proactively adapt to climate change, and achieve average growth of 6.5-7% between 2016 and 2020, PM Phuc said.
However, the nation is facing a slew of woes and challenges in the international integration and economic development processes while struggling with climate change and rising sea levels, he noted, so assistance from donors such as the WB will be required to cope.
He highly appreciated the WB’s effort to finalize the draft Country Partnership Framework between Vietnam and the WB in 2017-2022, saying State agencies will continue cooperating with the WB to complete this important document soon.
The WB will work with the Government to pinpoint new driving forces for the economy, Georgieva said, adding there is still much room for Vietnam to tap economic potential.
She noted the country’s traditional economic dynamics like cheap labor, the movement of rural workers to fast growing urban areas, and export dependence would not exist forever. Therefore, she said, Vietnam should focus on education to improve the quality of human capital as this is a decisive factor for the country’s success in the next 20 or 30 years.
The economic would not be able to expand 6-6.5% a year if macro-economic stability is not ensured and if labor productivity is not boosted, she said.
She added the WB would lend Vietnam US$1.8 billion to fund its projects to reduce poverty, manage water resources, develop urban areas and agriculture, and spur the private sector.