World Bank bolsters Vietnam’s inclusive and sustainable economic recovery

A $263.9-million International Development Association credit for Vietnam was approved on June 29 by the World Bank Board of Directors, aiming to bolster the country’s efforts to achieve an inclusive, green, and digitally-driven economic recovery with reforms aimed at supporting households, businesses, and the expansion of renewable energy.

“Reforms supported by this credit will strengthen Vietnam’s ongoing recovery from Covid-19 and subsequent commodity price shocks, while paving the way for more inclusive, greener, and digital-friendly development,” said Ms. Carolyn Turk, World Bank Country Director for Vietnam, noting that the World Bank looks forward to working with the government to implement these reforms and support Vietnam to achieve its development goals.

The new credit marks the second and final installment in a Development Policy Financing (DPF) series of two operations, following a $221.5 million operation approved in 2021.

While the impact of this operation is expected to fully materialize by 2024, the DPF series has already supported significant achievements. More than 140,000 businesses received tax support through a tax relief package in 2021. More than 85,000 children have received subsidized childcare, which has promoted gender equality in the workplace. Government services available online have doubled.

Going forward, the institutional and policy reforms supported by this operation will facilitate business recovery by enhancing the tax environment, supporting the financial inclusion of vulnerable households, and increasing access to quality childcare services.

To further spur green and digital development, the reforms supported by the DPF focus on procurement, digitizing public administration, scaling up renewable energy, and bolstering the financial sustainability of the power sector. Moreover, reforms supported by this operation are expected to further improve public service delivery to households and businesses.