Viet Nam leaders applaud WB support of local development

Update: February, 24/2016 - 09:04
Work Bank (WB) Group President Jim Yong Kim (second from left) presents Viet Nam 2035 report, prepared jointly by the Government of Viet Nam and WB Group, to Prime Minister Nguyen Tan Dung (second from right) yesterday in Ha Noi. — VNA/VNS Photo Duc Tam
HA NOI (VNS) — Prime Minister Nguyen Tan Dung expressed appreciation for the WB's co-operation in Viet Nam's socio-economic development, especially in poverty reduction and sustainable development as he met with World Bank (WB) Group President, Jim Yong Kim, in Ha Noi yesterday.

He also spoke highly of the close coordination between Vietnamese agencies and the WB in preparing the report, "Vietnam 2035: Towards Prosperity, Creativity, Equity and Democracy."

The report includes concrete targets and recommendations that match Viet Nam's development orientation, the PM said, highly valuing Kim's presence in the country to unveil the report.

During the three decades of Doi Moi (renewal), Viet Nam has made substantial and historic accomplishments.

However, Viet Nam is also facing major problems, especially the low level of development, the severe impacts of climate change and lingering consequences from past wars.

With local socio-economic infrastructure and manpower training quality not yet meeting development demands, the challenges posed by international economic integration were big, the Cabinet leader noted.

He expressed his hope for the WB's cooperation, particularly through supporting resources, in seeking preferential sources of sponsorship, policy consultancy and technical assistance, to fulfill the country's development goals.

Kim said Viet Nam attained numerous achievements, particularly in socio-economic development, poverty elimination, narrowing the development gap and the improvement of people's living standards.

He said that with the achievements already made, a long-term vision, intensive international integration, and efforts made by each citizen, Viet Nam would make even greater strides in the future.

The WB Group had continually followed and admired Viet Nam, which had become one of the world's great development success stories, and was ready to stand side-by-side with Viet Nam. Kim believed that the country would reach a developed and high-income status.

He noted that his delegation's presence in Ha Noi to release the Viet Nam 2035 report demonstrated the WB's strong commitment to Viet Nam's development, and that the World Bank Group would help the country access concessional long-term loans to develop renewable energy, education and health care.

At the end of the meeting, WB Group President Kim presented PM Dung with the Viet Nam 2035 report, which was compiled over more than a year by Vietnamese and WB specialists.

The report suggests directions and measures in fields that Viet Nam should focus on to become an industrialised and upper-middle income nation by 2035, ensure social progress and equality, and strengthen the State's capacity and accountability.

Meeting with Party chief

Party General Secretary Nguyen Phu Trong meets with Work Bank Group President Jim Yong Kim (left) yesterday in Ha Noi. — VNA/VNS Photo Tri Dung

Also yesterday, Party General Secretary Nguyen Phu Trong has asked the World Bank (WB) to continue its support for Viet Nam, aiming to help the country realise its socio-economic development targets and development orientations as set out in the Viet Nam 2035 Report.

During his reception for the visiting WB Group President Kim in Ha Noi, the Party chief spoke highly of the valuable support provided by the WB as well as personally by its president for Viet Nam in recent times, saying that they helped Viet Nam reach remarkable achievements during the country's Doi Moi process, especially in socio-economic development and international integration.

According to the Party leader, Viet Nam strives to become an industrial modernity-driven nation in the future, with a focus on improving the quality of labour productivity and competitiveness of its economy, renovating its growth model, promoting restructuring of State-owned enterprises, resolving bad debts, and ensuring safety of public debt.

While congratulating Viet Nam on the success of the 12th National Party Congress, the WB Group President valued Viet Nam's efforts in stablising its macro-economy, affirming that the country's orientation to build a socialism-oriented economy is a judicious and suitable strategy.

The guest affirmed that the WB would continue providing support for Viet Nam, including its efforts to persuade international financial institutions to furnish Viet Nam with preferential financial sources, thus helping Viet Nam strengthen economic reform, stabilise its macro-economy, and effectively adapt to climate change.

In his meeting with Kim on the same day, President Truong Tan Sang shared that Viet Nam was in increasing need of capital for infrastructure development, expressing his hope that the WB would support the country in accessing new sources of financial assistance.

Appreciating the WB's proposal to assist Viet Nam in developing renewable energy, the President stressed that this would help Viet Nam improve the environment in accordance with the outcomes of the 21st Conference of the Parties (COP 21) to the United Nations Framework Convention on Climate Change in Paris last year.

Deputy Prime Minister Nguyen Xuan Phuc also hosted a reception for WB President Kim.

WB vows to help VN

Governor of the State Bank of Viet Nam Nguyen Van Binh (right) receives President of the World Bank Group Jim Yong Kim in Ha Noi yesterday. — Photo VGP

The World Bank (WB) will support Viet Nam in building a road map to smoothly shift preferential loans from the International Development Association (IDA) to the International Bank for Reconstruction and Development (IBRD) to ensure the national budget's sustainable payment capacity.

The statement was made by President of the World Bank Group Jim Yong Kim at his working session with Governor of the State Bank of Viet Nam Nguyen Van Binh in Ha Noi yesterday.

He announced that the WB will focus its resources on helping Viet Nam realise the 12th National Party Congress's guideline and orientations as well as the Viet Nam 2035 Report.

He also appreciated efforts made by Governor Binh in managing monetary policies and banking restructuring. As such, the Vietnamese banking sector has gained remarkable achievements, contributing to stabilising the macro economy and promoting growth.

Binh pledged that Viet Nam would effectively use loans from the World Bank for its socio-economic development and poverty reduction plan in accordance with the bank's general development goals.

The WB leader is in Viet Nam to release the Viet Nam 2035 report, which was prepared jointly by the Government of Viet Nam and the World Bank Group, and lays out key reforms for the lower-middle income country to grow its economy, become more equitable, and put in place modern governance over the next 20 years.

Viet Nam's path to upper-middle income status

The report "Viet Nam 2035: Toward Prosperity, Creativity, Equity and Democracy" was released in Ha Noi yesterday, laying out a path for the country to reach upper-middle income status by 2035.

At the launch ceremony, Minister of Planning and Investment Bui Quang Vinh said the report, which was jointly prepared by the World Bank (WB) and the Vietnamese Government, comprised of seven chapters that deal in-depth with three development pillars and make recommendations for turning Viet Nam into an upper-middle income country by 2035.

The Southeast Asian nation must have a high and continuously stable growth rate in the next two decades, with annual GDP growth of 7 per cent, reaching US$15,000–18,000 per capita by 2035.

The report focuses on three areas: improving productivity and private-sector competitiveness, promoting equity and social inclusion and improving public sector effectiveness.

It proposes strengthening the economy and the financial sector, focusing on more effective regulation, protection of property rights and enforcement of competition policies.

It also recommends Viet Nam consider new policies and investments supporting the growth of industries linked to global supply chains, along with smarter use of international trade agreements like the Trans-Pacific Partnership.

Improvements to the agriculture sector – which employs nearly half of the nation's workforce – as well as stronger environmental protections and better planning for clean energy generation are recommended.

The report also calls upon Viet Nam to continue fostering equality and social inclusion by providing greater access to opportunities for minorities, people with disabilities and women, and delivering public services that provide for an aging, urbanised and middle-class society.

The report recommends governance improvements to help boost accountability and transparency, and ensure Viet Nam has strong institutions to keep pace with the country's rapid development. Another recommendation calls for Viet Nam to strengthen state accountability by ensuring checks and balances between the three branches of government and creating opportunities for citizen feedback on public service delivery.

At the ceremony, Deputy Prime Minister Vu Duc Dam highlighted achievements during the doi moi (renewal) process launched in 1986, noting that aspirations for a bright future with an affluent economy, sustainable environment and a free, prosperous and happy life for all people required more effort from Viet Nam.

He said "Viet Nam 2035" was an important report on Viet Nam in the next 20 years. The Vietnamese Government will refer to its suggestions while making policies, including the socio-economic development plan for 2016–20 and the socio-economic development strategy for 2020–30.

Meanwhile, World Bank Group President Jim Yong Kim considered the report important to both Viet Nam and the World Bank, adding that their co-operation in preparing the report illustrated the World Bank's commitment to helping with Viet Nam's development.

Viet Nam has a strong aspiration, which is to become a modern industrialised country toward prosperity, creativity, equality and democracy. That aspiration can be realised through institutional reforms and support policies based on the three pillars: economic prosperity with environmental sustainability, equity and social inclusion, and a capable and accountable state, he noted. — VNS