Deputy PM lauds World Bank partnership, urges stronger cooperation

Since 1993, the WB has consistently been one of Viet Nam’s largest international donors. As of the end of 2024, it had supported Viet Nam with 180 programmes/projects totalling over 26 billion USD, of which approximately 23 billion USD was loan agreements. These projects have facilitated Viet Nam’s strong development, particularly in infrastructure development and technical support in treasury and banking sectors.

According to Deputy PM, the recently released World Bank report titled “Viet Nam Rising – Pathways to a High-Income Future” offers four highly practical recommendations for Viet Nam, including investing deeply in human capital and digital transformation; expanding and improving the efficiency of public investment; strengthening financial sector oversight to reduce systemic risks; and promoting green transition and enhancing human resourced capacity and undertaking fundamental institutional reforms.

Regarding proposed cooperation orientations for the coming period, Phoc requested the WB to enhance collaboration in areas where it has strengths and Viet Nam has urgent needs, such as strategic infrastructure, logistics, clean energy, urban development, digital transformation, data governance, and climate adaptation. He also suggested cooperation on ODA and concessional loans through new development finance instruments for transport infrastructure and coastal resilience; and the implementation of climate-related loans under a “climate co-benefits” approach.

Regarding the World Bank’s lending operations in Viet Nam, the Deputy PM discussed with Vice President Jaramillo several difficulties in implementing WB-funded projects, including loan costs and the implementation of non-refundable aid programmes. He urged the WB to adopt more flexible standards in applying conditions and requirements related to procurement, environment, and social issues; consider appropriate interest rates for certain loans; and show flexibility in addressing policy differences, thereby accelerating project implementation.

He noted that Viet Nam will soon carry out numerous major projects and hopes to continue effective cooperation with the WB in developing transport infrastructure, energy, digital transformation, and climate change adaptation. He requested that the WB Vice President continue to pay attention to and accompany Viet Nam, and work closely with the WB Country Director in Viet Nam to promote the effective implementation of cooperative initiatives and realise the shared priorities of both sides.

Appreciating Viet Nam’s development goals and orientation for the coming period, the WB Vice President, his colleagues, and Deputy PM Phoc held candid discussions on several issues, such as implementing reforms to reduce processing time and accelerate project progress; mobilising capital for major projects through a combination of public and private financing; investing in projects applying science, technology, digital transformation, and innovation; and applying advanced technology in infrastructure development.

They also focused discussions on responding to climate change; preventing erosion, subsidence, saltwater intrusion, and flooding in the Mekong Delta and Ho Chi Minh City; implementing the project on sustainable development of 1 million hectares of high-quality, low-emission rice linked to green growth in the Mekong Delta; and providing financing support for private businesses implementing wind power, solar power, and mining projects.