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The Asian Development Bank (ADB) plans to lend Vietnam about US$776mn over the next two years, according to its Country Strategy and Program (CSP) update for 2005-06, endorsed by ADB’s board of directors.
Vietnam’s outlook in the short and medium term is healthy. “Endowed with natural resources, enterprising people, and located between two huge markets – the Southeast Asian nations and the People’s Republic of China – Vietnam has great potential for further economic growth and poverty reduction,” says Bradford Philips, ADB country director for Vietnam.
Vietnam’s economy grew 7.1% in 2003, an improvement over the 6.4% achieved the previous year.
The proposed ADB loan total is based on annual commitments of US$178mn from its concessional Asian Development Fund, which supports the sustainable development of ADB’s poorest members, and about US$210mn from its ordinary capital resources. In addition, US$79mn is planned for sub-regional projects.
The final allocation will depend on availability of resources and country performance. A mix of loan and grant cofinancing from development partners will be sought to support ADB’s thematic priorities.
ADB’s Country and Strategy Program, approved in 2002, aims at reducing poverty by stimulating growth and employment generation through private sector development, agricultural diversification, and good governance. It also emphasises socially inclusive development and focuses on the Central Region, which still has a high incidence of poverty.