World Bank approves plan for up to dlrs 3 billion in lending for Vietnam
HANOI - The World Bank will provide up to dlrs 3 billion of low interest
loans over four years to Vietnam as the communist country transforms
itself
into a market economy, the bank said Wednesday.
The loan scheme is the bank's largest concessional funding to any poor
country outside of India, country director Andrew Steer said.
It "reflects the extraordinary potential, and opportunities, that exist
in
Vietnam," Steer said in a statement. "We believe that Vietnam, if it
stays
on the right track and addresses the challenges that lie ahead, can meet
its
development objectives in the coming years."
The World Bank said its lending plan is based on the government's
anti-poverty and economic growth strategy finalized in May, and will
support
the transition to a market economy, equitable development and good
governance.
The plan calls for dlrs 300 million to dlrs 760 million in funding per
year,
the Washington-based bank said. The amount the bank lends is customarily
determined by how well the money is used and whether targets are met.
Vietnam began market reforms in the late 1980s following a disastrous
experience with collectivized agriculture and a centralized command
economy.
Foreign investment initially surged, but then sagged as investors became
discouraged by the slow pace of reforms.
But reforms have accelerated in the past two years, and Steer said there
is
no longer any doubt that Vietnam will move firmly toward a market
economy.
Vietnam plans, however, to retain about 2,000 state-owned enterprises,
down
from nearly 6,000 now. Many of the state enterprises are overstaffed,
technologically backward and heavily indebted. Less than 40 percent are
profitable.
There was no immediate reaction from the government.
The Associated Press - September 4, 2002
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