The World Bank Board of   directors today approved the first Economic Management and   Competitiveness Credit for Vietnam, EMCC 1, to help the country with economic management reforms for higher productivity and competitiveness.

The EMCC 1, the first of a series of three operations, provides $ 250   million concessional financing to support reforms in seven policy areas:   financial sector; fiscal policy; public administration and   accountability; state enterprise management; public investment   management; efficiency of the business environment; and equity and   transparency of the business environment. “The EMCC follows on from the   successful Poverty Reduction Support Credit series, and aims to address   new challenges that will raise the efficiency and competitiveness of the   Vietnamese economy” said Victoria Kwakwa, the World Bank Country   director for Vietnam. “I hope that the EMCC series will provide a   platform for deepening and coordinating dialogue between development   partners and the government of Vietnam with a view to helping Vietnam   transition to a new economic growth model, which targets competitiveness   and the quality of growth.”Macroeconomic stability is a major priority   for competitiveness in Vietnam, and a core objective of EMCC. The EMCC   will help monitor macroeconomic policies and ensure that it supports the   stabilisation efforts of the government. Public Investment Management,   SOE and banking sector reforms are prominent themes under the programme,   in line with the government’s priorities for structural reforms. In   addition, the EMCC prioritises government efforts to streamline   administrative procedures and strengthen fiscal discipline because they   are critical to productivity and competitiveness. Vietnam implemented   major reforms in the early nineties, which contributed to large gains in   competitiveness that spurred rapid growth and poverty reduction. There   is growing recognition, however, that the reform process has slowed down   in recent years. New reforms are needed to address major structural   inefficiencies, promote more efficient use of labour and capital assets,   and increase productivity across the economy. EMCC aims to support the   implementation of this reform programme over the next three years.

 

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