The State Bank of Vietnam (SBV) and the World Bank (WB) signed three credit agreements worth US$400 million and related documents in Hanoi on May 14.

 

The agreements look to help Vietnam strengthen economic management for higher productivity, competitiveness and education reform, and raise the school readiness of five-year-old children.  The 250 million Economic Management and Competitiveness Credit (EMCC) for Vietnam, the first of three operations, will support the country’s reforms in seven policy fields.  They include the financial sector, fiscal policy, public administration and accountability, state-owned enterprise management, public investment management, effectiveness of the business climate, and equity and transparency of the business environment.  The second wave of credit worth US$50 million for the Higher Education Development Policy - Third Operation will assist the Government in realizing its higher education reform programme by improving administration and higher education.  Specifically, it aims to further improve the responsiveness, fiscal transparency, sustainability and effectiveness of the higher education sector as well as the quality of institutions.  The third injection of credit is for the School Readiness Promotion Project, which helps raise the school readiness of children entering primary education, in particular those least likely to succeed in a school environment.  The US$100 million project will support selected elements of the national programme on “Universal primary education for five-year-old children 2010 – 2015” as well as improve the quality of preschool education.  All three credits, which are provided by the WB’s International Development Association (IDA), are part of the World Bank’s concessional lending windows for low income countries.

World Bank/VOV online