The Asian Development Bank (ADB) has launched a new country partnership strategy (CPS) for Viet Nam covering the period 2023–2026. The strategy will help promote inclusive, green, and private sector-led development in Viet Nam and build a foundation for the country to achieve its goal of becoming upper middle-income by 2030.
“Viet Nam has weathered the COVID-19 pandemic relatively well and is benefiting from strong economic fundamentals, robust trade and investment, and an ongoing digital transformation,” said ADB Country Director for Viet Nam Andrew Jeffries. “Notwithstanding the progress, Viet Nam faces multiple development challenges, including private sector competitiveness, the need for sustainable infrastructure financing, and vulnerability to climate change and natural hazards. This CPS is designed to position ADB as a reliable, relevant, and responsive partner to Viet Nam in its efforts to achieve green and private sector-led growth.”
ADB’s new partnership strategy for Viet Nam is anchored on the recognition that the country needs tailor-made solutions to best meet its development challenges. It also takes a provincial focus as this is where Viet Nam’s development needs are greatest.
ADB will support Viet Nam in transitioning to a green economy and responding to the impacts of climate change. Under the partnership strategy, ADB will help Viet Nam review its framework to achieve net-zero carbon emissions by 2050. In addition, ADB will partner with Viet Nam in exploring innovative solutions to develop carbon markets and green finance, such as green bonds and a green finance facility to catalyze investments in sustainable infrastructure projects.
The strategy recognizes that a competitive private sector is critical to achieving high and sustained economic growth. To boost private sector-led growth, ADB will help advance state-owned enterprise reforms using a combination of nonsovereign loans and targeted technical assistance. ADB will also utilize its Trade Finance Program to help Vietnamese private sector firms integrate with global value chains and offer technical assistance for Viet Nam to operationalize its new Public–Private Partnership law.
To build greater social equity in Viet Nam, ADB will support an expansion in public service delivery, especially in the health and education sectors. In addition, ADB will assist the development of financial technology capacity to achieve greater financial inclusion in Viet Nam, and use financial intermediary loans to increase access to finance for women-owned businesses.