The new 15-million Australian dollar (US$10 million) Việt Nam Private Sector Development Partnership aims to create inclusive and sustainable private investment opportunities. — AFP/VNA Photo

HÀ NỘI — A new partnership between International Finance Corporation (IFC) and the Australian Government is expected to unlock at least $300 million in private investment in Việt Nam.

The partnership aims to help Việt Nam continue on its path to green and inclusive growth, while addressing needs emerging from the COVID-19 pandemic.

The new 15-million Australian dollar (US$10 million) Việt Nam Private Sector Development Partnership aims to create inclusive and sustainable private investment opportunities by enabling a transparent, predictable, convenient, and cheaper way to do business in Việt Nam for all.

Regulatory and policy reform, stronger sustainable and inclusive business practices, and banking that serves women-led businesses and climate-friendly solutions will be priority areas of the partnership.

The initial six projects valued at 5.7 million Australian dollars ($3.8 million) have been endorsed for implementation.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.

Australia’s Ambassador to Việt Nam Andrew Goledzinowski said: “The partnership between Australia and IFC is a natural fit given our shared and strong interests in seeing Việt Nam's private sector continue to thrive.

“Encouraging green, resilient, and inclusive growth is at the heart of the partnership.”

Over the next five years, the IFC-Australia partnership will work with Việt Nam's public and private partners to unlock private capital required for its climate and development priorities, especially in key growth sectors including infrastructure, agriculture, manufacturing, and tourism.

Thomas Jacobs, IFC Country Manager for Việt Nam, Cambodia and Laos, said: “With COVID-19 and global food and energy crises already depleting public resources, the private sector can play a key role in the country’s transition to a low-carbon growth model but only if the conditions are right and policies are in place.

“We are delighted to further deepen the partnership with Australia to promote the private sector’s participation in Việt Nam's ambition to become a high-income country and achieve carbon-neutral status in the years ahead.”

The World Bank Group estimates Việt Nam – one of the most vulnerable countries in the world to climate change - needs additional investment of about 6.8 per cent of GDP a year, or a cumulative $368 billion, in present value terms, through 2040 to realise its commitment of net zero emissions by 2050.

Half of the total cost, or $184 billion, is expected to come from the private sector. — VNS