On May 30^th, 2017, the World Bank (WB) Executive Board discussed and approved the new Country Partnership Framework (CPF) of World Bank Group in Vietnam focusing on comprehensive growth, investment in human, sustainable environment and good governance. Along with this partnership framework, the World Bank Executive Board also approved to provide the loan of 358 million USD for 2 new projects.

This partnership framework also supports the implementation of goals set in the Vietnam’s Five-Year Socio – Economic Development Plan for 2016-2021 and the objective of balancing between economic growth and sustainable environment, promoting equality and building capacity and accountability of government agencies. This new CPF of the WB Group continuously supports Vietnam to develop and reach to a higher standard in the middle-income countries, and graduate from the International Development Assocation – WB’s fund for low-income countries.

CPF has been drafted based on the analysis of Vietnam 2035: Toward Prosperity, Creativity, Equality and Democracy and of Vietnam Country Assessment Report and outlined a number of strategic shifts, including: (i) Comprehensive support for the private sector and the participation of the private sector into the economy; (ii) Sustainable finance for public services and social policies; (iii) Support for poverty reduction of minor ethnic through job creation and income improvement; (iv) Multi-sectorial support to enhance the link among education, training and the labor market; and (v) Low-carbon electricity production promotion and incentives.

“During the implementation of the country partnership framework, World Bank will focus on supporting Vietnam to implement reform measures that have strategic impacts. We will mobilize all institutions – the World Bank, IFC, MIGA – and available tools to make strategic shifts such as lending, policy dialogue, analysis and consultancy, or guarantees,” said Mr. Ousmane Dione.

In the upcoming period, the International Finance Corporation (IFC) will provide supports through investment and consultancy, long-term capital mobilization for investments that bring substantial socio – economic benefits, the development of capital markets and other private capital. IFC will attract foreign investors into such key sectors as finance, infrastructure, manufacturing and energy in order to combine international experience with on-the-spot understanding to enhance the competitiveness and promote the development of the private sector, and in turns maximize the return on investment and social benefits.

Along with this partnership framework, the WB Executive Board approved to lend Vietnam 358 million USD for two new projects: (i) Scaling up Urban Upgrading Project (SUUP) with the IDA commitment of 240 million USD to renovate and upgrade the infrastructure and urban plannings in the cities of Bac Lieu, Ben Tre, Soc Trang, Tan An, Vi Thanh and Vinh Long. Approximate 500,000 people are expected to get direct benefits from this project, and about 1 million people to get indirect benefits from this project thanks to improved infrastructure and environment. (ii) Vietnam Emergency Natural Disaster Reconstruction Project (VENDRP) to reconstruct and rehabilitate the infrastructure in the provinces of Binh Dinh, Phu Yen, Quang Ngai, Ninh Thuan and Ha Tinh. They are the provinces severely damaged by long-lasting floods in 2016. The project helps renovates and upgrades roads, bridges, irrigation systems, water supply systems and disaster prevention works. This project also helps enhance the capacity of disaster risk management offcials. It is expected to bring benefits directly to 1.2 million people and indirectly to 5.1 million people in 5 above provinces.