Workers at Hưng Việt Garment JSC in Hưng Yên Province. — VNA/VNS Photo

HÀ NỘI — The Government of Việt Nam and the World Bank have signed an agreement for financing of US$221.5 million to support Việt Nam’s recovery from the COVID-19 pandemic through policy reforms on improving financial inclusion and greater environmental resilience.

World Bank Country Director for Việt Nam Carolyn Turk said that World Bank was proud to support Việt Nam at a time when the economy was recovering from the biggest shock of past decades and when so many uncertainties remained.

“I believe that the range of policy actions supported by this operation will not only create a strong foundation for the immediate recovery from the COVID-19 crisis but also benefit Việt Nam in the longer run.”

The US$221.5-million-credit is a budget support operation and comes in the form of concessional terms for a period of 30 years with a grace period of five years. It encourages policy reforms under two pillars.

The first supports an inclusive economic recovery by easing the tax burden on businesses, improving access to financial assistance among vulnerable groups, reducing gender gaps in the workplace and promoting financial inclusion.

The second contributes to greening trade policies, accelerating the adoption of e-government, and increasing the uptake of renewable energy.

The Government has moved quickly on these reforms in recent months. The approval of mobile money licences and the roll out of electronic invoice systems in the country’s largest municipalities are good examples of this.

The pace of reform is expected to accelerate as part of the recovery package to be discussed at the National Assembly next week.

The credit is provided through the World Bank’s International Development Association, the Bank’s concessional lending window for low-income countries. — VNS