ADB praises Vietnam's high growth, reaffirms strong support
Asian Development Bank (ADB) President Takehiko Nakao met with Viet Nam’s Prime Minister Nguyen Xuan Phuc during a 3-day visit to Ha Noi, where they discussed Viet Nam’s recent economic development and continued ADB support.
Mr. Nakao also met with Governor of the State Bank of Viet Nam Le Minh Hung and will participate in the 6th Greater Mekong Subregion (GMS) Summit and the 10th Cambodia–Lao PDR–Viet Nam Summit.
Mr. Nakao commended the government for steering Viet Nam’s economic growth to 6.8% in 2017—the highest since 2007. The country has pursued sound macroeconomic policies and reduced the budget deficit in 2017, pushing down the total public debt to GDP ratio.
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“It is important to continue structural reforms to improve productivity and economic competitiveness,” said Mr. Nakao. “
The banking system needs to be strengthened by resolving non-performing loans and tightening supervision. The program to divest state-owned enterprises should be accelerated, and their corporate governance strengthened.”
He reaffirmed ADB’s commitment to helping Viet Nam achieve more inclusive and environmentally sustainable growth, the central goal of ADB’s country partnership strategy (CPS) with Viet Nam for 2016–2020. Anchored in the government’s 2016–2020 Socio-Economic Development Plan, ADB’s assistance under the CPS focuses on creating quality jobs and improving economic competitiveness, strengthening infrastructure and service delivery, and addressing environmental sustainability and climate change.
Mr. Nakao said ADB is working closely with the government to ensure that Viet Nam makes full use of the $613 million of ADB’s concessional financing that remains available to it in 2018, before the country’s graduation from concessional assistance on 1 January 2019.
Mr. Nakao stated that after Viet Nam’s transition to ADB’s more market-based resources (instead of mixed with concessional assistance), ADB can provide at least $1 billion a year in 2019 and 2020 (through our sovereign operations). ADB will support projects in intra-regional and urban transport, wastewater and drainage, and urban climate change resilience.
Furthermore, ADB will actively look to mobilize concessional cofinancing from ADB’s trust funds and bilateral and multilateral partners.
