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|The ADB will administer funds from Canada and Australia to support the private sector development in Vietnam|
The $4.6 million technical assistance package from the Asian Development Bank (ADB) will be used to provide policy advisory, assist in the preparation of infrastructure projects, and strengthen institutional capacity to enhance sustainable economic growth. The financing includes a $2.7 million grant from the government of Canada and a $1.9 million grant from the government of Australia, both to be administered by the ADB.
“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 (SEDS) 2021-2030, maintain the growth rate of 6-7 per cent, 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 in infrastructure. However, its infrastructure remains underdeveloped compared to its regional peers. The country will need to mobilise an estimated $237 billion by 2030 to close the infrastructure deficit, which is $49 billion more than the historical spending trajectory.
Recognising the potential of the private sector to help close the infrastructure deficit, Vietnam’s SEDS 2021-2030 prioritises 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.
The ADB’s new technical assistance will help by delivering policy advice on public-private partnerships (PPPs) and private sector development, piloting projects that embed the G20 Quality Infrastructure Investment principles, and strengthening PPP and private sector development institutional capacities.