The Asian Development Bank (ADB) has launched a new country partnership strategy for Vietnam for the period 2023–2026, to help promote inclusive, green, and private sector-led development in the country.
The strategy will also help the Southeast Asian nation build a foundation to achieve its goal of becoming upper middle-income by 2030, the bank said Friday.
“This strategy is designed to position ADB as a reliable, relevant, and responsive partner to Vietnam in its efforts to achieve green and private sector-led growth,” Andrew Jeffries, ADB country director for Vietnam, said in a release.
“Vietnam has weathered the Covid-19 pandemic relatively well and is benefiting from strong economic fundamentals, robust trade and investment, and an ongoing digital transformation.
“Notwithstanding the progress, Vietnam faces multiple development challenges, including private sector competitiveness, the need for sustainable infrastructure financing, and vulnerability to climate change and natural hazards,” he added.
According to the ADB, the new partnership strategy for Vietnam is anchored on the recognition that the country needs tailor-made solutions to best meet its development challenges. It also takes a provincial focus as this is where Vietnam’s development needs are greatest.
ADB will support Vietnam in transitioning to a green economy and responding to the impacts of climate change. Under the partnership strategy, the bank will help the country review its framework to achieve net-zero carbon emissions by 2050.
In addition, the two sides will partner in exploring innovative solutions to develop carbon markets and green finance, such as green bonds and a green finance facility to catalyze investments in sustainable infrastructure projects.
ADB stated that the strategy recognizes a competitive private sector is critical to achieving high and sustained economic growth. To boost private sector-led growth, the bank will help advance state-owned enterprise reforms using a combination of non-sovereign loans and targeted technical assistance.
The institution will also utilize its Trade Finance Program to help Vietnamese private sector firms integrate with global value chains and offer technical assistance for the nation to operationalize its new public–private partnership law.
To build greater social equity in Vietnam, ADB will support an expansion in public service delivery, especially in the health and education sectors. The bank will also assist the development of financial technology capacity to achieve greater financial inclusion in Vietnam, and use financial intermediary loans to increase access to finance for women-owned businesses.
Earlier this month, Standard Chartered Bank Vietnam signed a memorandum of understanding with the nation’s Ministry of Natural Resources and Environment to assist with the country’s green financing and efforts to combat climate change.
The bank will support the ministry in capacity building and promoting private sector participation in climate change adaptation, enhancing green finance and sustainable development programs, and sharing information on and experiences in carbon markets.