Vietnam and the World Bank
In an effort to support the reforms in Vietnam and foster the country's shift from a centrally planned to a market-based economy, the WB's partnership with Vietnam has witnessed more than 270 projects or advisory and analytic activities conducted through strategic partnerships with four of the WBG's five organizations, covering areas including poverty reduction, education, rural and urban services, infrastructure, new energy, and environmental protection.
In terms of future planning, Vietnam and the WB are prioritizing "inclusive growth, investment in people, environmental sustainability and good governance", as illustrated in the new Country Partnership Framework (CPF), which was approved and endorsed by the WBG in May 2017.
Based on analyses from two previous reports, the CPF introduced several strategic shifts, including strengthening private sector development, supporting financial sustainability and poverty reduction, improving education, and promoting low carbon energy generation.
According to the WB website, the term "World Bank" refers only to the IBRD and IDA, which "provide low-interest loans, interest-free credit, and grants to developing countries".
[4] In an effort to support the reforms in Vietnam and foster the country's shift from a centrally planned economy to market-based economy, the WB's partnership with Vietnam has witnessed more than 270 projects or advisory and analytic activities conducted through strategic partnerships with four of the WBG's five organizations, covering areas including poverty reduction, education, rural and urban services, infrastructure, new energy, and environmental protection.
[11] However, due to more complicated project designs, deficient performance evaluation, and the postponement of remedy measures, a tendency for outcome ratings to decline has been seen in more recent years.
According to the VBF website, "the initiative was made in the context that government, donors, and foreign investors were looking for improvements to accelerate investment in Vietnam.
"[17] With the guidance of the IFC, the VBF has saved an estimated $200 million for the private sector through "reforms that reduced barriers and increased transparency in business development processes".
[19] As of 19 July 2019[update], the MIGA has guaranteed a total of US$907.4 million for three projects, collaborating with the IBRD and the IFC to enhance infrastructure, manufacturing development, and private sector growth in Vietnam.
[21] On 7 March 2014, MIGA guaranteed US$500 million to cover the loan financing the BT20 National Highway 20 Project, which aimed to rehabilitate and upgrade the critical connector road for the Ho Chi Minh City–Da Lat corridor and was expected to boost the economic development of Vietnam's poorest areas.
On 26 April 2011, the WB approved the Trung Son Hydropower Project, which aimed to generate renewable energy in the form of hydroelectricity.
With a loan of $330 million from the IBRD, the Trung Son Hydropower Company constructed the dam while the WB provided facilitation and technical support.
The CPF was "based on analysis in the Vietnam 2035: Toward Prosperity, Creativity, Equity, and Democracy and the 2016 Vietnam Systematic Country Diagnostic" and introduced several strategic shifts, including strengthening private sector development, supporting financial sustainability and poverty reduction, improving education, and promoting low carbon energy generation.
[38] The WB planned to further promote private sector development, support public services and transfers, reduce poverty among ethnic minorities, reconcile the education and labor markets, and encourage more low-carbon energy generation.
Three pillars were proposed to achieve the goal: "Economic Prosperity with Environmental Sustainability", "Equity and Social Inclusion", and "A Capable and Accountable State".
However, the Vietnamese government refused to adopt these proposals, and it has since been reluctant to liberalize trade, leading some scholars to conclude that the WB had limited influence on Vietnam's development.
