Vietnamlawmagazine

The State Bank of Vietnam and the World Bank (WB) on May 14 signed three credit agreements totaling USD 400 million to assist the country’s economic management reforms for higher productivity and competitiveness.

The funds will also be used to support the reform of higher education and to promote school readiness for 5-year children.

The first economic management and competitiveness credit for Vietnam will provide USD 250 million in concessional funds to support reforms in fiscal policies, financial sector, public administration and accountability, and state enterprise management.

It will also cover public investment management, improvement of equality and transparency of the business environment, and help monitor macroeconomic policies that support the Government’s stabilization efforts.

“It is necessary to continue these efforts and accelerate the restructuring of state enterprises, public investment and banking sector,” said WB country director for Vietnam Victoria Kwakwa.

The second credit worth USD 50 million will support the reform of policies to strengthen governance, financing and quality of higher education.

The goals are to improve research and financial transparency as well as sustainability and effectiveness of the higher education sector.

The third project for school readiness promotion will raise school readiness for children entering primary education, particularly for the most vulnerable children.

It will support Vietnam’s national program on universal early childhood education for 5-year children during 2010-15 with USD 100 million.

The project will back efforts to expand full-day preschool enrolments and help improve preschool quality assurance and strengthen professional expertise of teachers.-