The technical assistance will provide policy advice, assist in infrastructure project preparation, and strengthen institutional capacity to enhance sustainable economic growth.

The financing includes a 2.7 million USD grant from the Government of Canada and a 1.9 million USD grant from the Government of Australia, both to be administered by the ADB.

(Photo for illustration: baochinhphu)

“Vietnam has achieved impressive socio-economic development over the past three decades by maintaining high economic growth gained from its structural reforms,” said ADB Principal Private Sector Development Specialist Donald Lambert. “To meet the targets of its upcoming Socio-Economic Development Strategy 2021-2030, maintain growth rate of 6-7 percent, and achieve the Sustainable Development Goals, Vietnam will need to further accelerate economic reforms, expanding the role of the private sector in driving the country’s development.”

Between 2011 and 2020, Vietnam invested an estimated 117 billion USD in infrastructure. However, the country’s infrastructure remains underdeveloped compared to its regional peers. The country will need to mobilise an estimated 237 billion USD between 2021 and 2030 to close the infrastructure deficit, which is 49 billion USD more than the historical spending trajectory.

Recognising the potential of the private sector to help close the infrastructure deficit, Vietnam’s Socio-Economic Development Strategy 2021-2030 prioritizes removing barriers to open competition and developing a supportive environment to increase the private sector’s contribution to the economy, including a larger role in infrastructure development.

ADB’s new technical assistance will help by delivering policy advice on PPP and private sector development, piloting projects that embed the G20 Quality Infrastructure Investment principles, and strengthening PPP and private sector development institutional capacities.

Source: VNA