The World Bank (WB) will give a 688 million USD loan for the implementation of five projects in poverty reduction, health, energy and environmental sanitation in Vietnam.

The financing agreement to this effect was signed between the State Bank of Vietnam and WB in Hanoi on May 25.

Accordingly, the Second Northern Mountains Poverty Reduction project, which receives 150 million USD in loan, will continue to enhance the living standards of the poor in six provinces of Lao Cai, Yen Bai, Son La, Hoa Binh, Dien Bien and Lai Chau.

It also helps build capacity of local governments and communities.

In health sector, the 75 million USD Central North Region Health Support Project, out of which 65 million USD is financed by the WB, is expected to improve the medical network, from provincial to grassroots levels, and train the health workers to fill the shortage of skills.

The 318 million USD First Power Sector Reform Development Policy Loan is to develop a competitive power market by reducing the existing monopoly.

Besides, the WB will also provide loans worth 155 million USD to an environmental sanitation project in Ho Chi Minh City and a water supply and sanitation project in the Red river delta.

Addressing the function, State Bank Governor Nguyen Van Giau spoke highly of WB’s support to Vietnam , saying the signing of the agreement is an evidence of the actualisation of WB’s commitment to aid Vietnam in important and prioritised sectors.

WB Director in Vietnam Victoria Kwakwa said she hoped that these five projects would be successfully implemented and make positive contributions to Vietnam ’s socio-economic development.

(CPV/VNA)