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Tuesday, July 16, 2024

ADB provides US$4.6 million for Vietnam to develop private sector

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HCMC – The Asian Development Bank (ADB) has approved technical assistance worth US$4.6 million to help Vietnam strengthen public–private partnerships, private sector development and State-owned enterprise reform.

Specifically, ADB will provide policy advice, assist with preparation for infrastructure projects and strengthen the institutional capacity to enhance sustainable economic growth. The financing includes a US$2.7 million grant from the Canadian Government and US$1.9 million from the Australian Government, both to be administered by ADB, the local media reported.

ADB principal private sector development specialist Donald Lambert said Vietnam had achieved impressive socioeconomic development over the past three decades by maintaining the high economic growth gained from its structural reforms.

To meet the targets of its socioeconomic development strategy in 2021-2030, maintain a growth rate of 6%-7% and achieve the sustainable development goals, Vietnam needs to further accelerate economic reforms and expand the role of the private sector in driving the country’s development, Lambert added.

From 2011 to 2020, Vietnam invested an estimated US$117 billion in infrastructure. However, its infrastructure remains underdeveloped compared to other countries in the region.

Vietnam needs to mobilize some US$237 billion in 2021-2030 to close the infrastructure deficit.

Recognizing the potential of the private sector in closing the infrastructure deficit, Vietnam has prioritized the removal of obstacles to open competition and the development of a supportive environment to increase the private sector’s contribution to the economy, including a larger role in infrastructure development.

ADB’s new technical assistance will help by providing policy advice on public–private partnerships and private sector development as well as piloting projects that embed the G20 quality infrastructure investment principles.

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