ADB offers support for Vietnam COVID-19 response

March 25, 2020 | 11:17

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The Asian Development Bank (ADB) has signalled in no uncertain terms that it is ready to provide Vietnam with timely and flexible support for the government’s response to the novel coronavirus (COVID-19) pandemic.

adb offers support for vietnam covid 19 response

The president of the ADB held meetings with Vietnamese government leaders to ensure smooth co-operation in combating COVID-19

“The Asian Development Bank (ADB) stands ready to provide financial assistance and policy advice to help the government of Vietnam contain the spread of COVID-19,” said ADB president Masatsugu Asakawa. “We will consider all options, including quick-disbursing budget support, policy-based lending, and expedited disbursement of existing loans, to ensure any support package can be approved quickly and disbursed in a timely manner.”

Asakawa discussed options for ADB support in detail with Vietnam’s Minister of Finance Dinh Tien Dung on March 20 and Governor of the State Bank of Vietnam Le Minh Hung today (March 25).

Asakawa commended the government on its timely and effective actions to combat the pandemic. He welcomed the government’s focus on maintaining economic stability and growth in the medium and long-term, including through expanding public investment expenditure and strengthening social safety nets for poor and vulnerable households.

Last week, the ADB announced a $6.5 billion initial package to address the immediate needs of its developing member countries as they respond to the COVID-19 pandemic. Asakawa said the ADB will provide additional support as needed.

Also today, the ADB reported that Vietnam’s local currency bond market contracted 3.9 per cent on-quarter in local currency terms to $53.6 billion at the end of December 2019. The contraction was driven largely by the maturation of all short-term outstanding central bank bills during the fourth quarter of 2019.

The government bond market decreased by 3.9 per cent on-quarter in local currency terms to $49.2 billion at the end of December 2019. The corporate bond market also contracted 4.9 per cent on-quarter in local currency terms to $4.3 billion at the end of 2019.

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