Australia and the World Bank partner to support Vietnam’s development agenda

Hanoi, 11 April 2017 – The Australian Ambassador, H.E. Craig Chittick, and the World Bank Country Director, Mr Ousmane Dione, signed today a new four year partnership to continue joint support to Vietnam’s sustainable and inclusive economic reform agenda.

Key achievements of the first phase of this partnership have included:

  • improved national connectivity and access to markets for businesses, famers and the poor by constructing over 200km of rural roads, upgrading national highways and building 87 bridges;
  • increased sustainable access to clean water and sanitation through the introduction of innovative mobile phone technologies to monitor water use; and
  • improved poverty reduction strategies for rural communities in the Northern Mountains through providing policy advice to a new Law on Ethnic Minorities

“One of the great achievements under the first phase of the partnership was to support the Government of Vietnam to develop the Vietnam 2035 report – a bold and ambitious vision for Vietnam’s economy in the next 20 years. Through the second phase of this partnership Australia looks forward to working with the World Bank to support Vietnam to implement this vision so that all citizens benefit” said H.E. Craig Chittick, Australian Ambassador to Vietnam.

Mr. Ousmane Dione, the World Bank Country Director for Vietnam noted, “The first partnership created a strong synergy to support the Vietnam’s development agenda. We have seen joint work in critical policy and reform areas enabling greater impact and influence than by working individually. This stepped up engagement will be mutually beneficial and help deliver stronger development results for Vietnam”.

Australia will provide 25 million Australian Dollars to the World Bank to implement this partnership over the next five years. Focusing on the areas of trade and competiveness; transport; ethnic minorities; Mekong delta with two crosscutting issues of gender and innovation, the partnership will support Vietnam to implement reform priorities identified in the Socio-Economic Development Plan 2016-2020 (SEDP).

Background Information

Vietnam’s transition to a market economy has transformed it from one of the world’s poorest countries into a lower middle income country. However, Vietnam faces ongoing challenges to continue growth and poverty reduction in an inclusive and sustainable way. Given Vietnam’s stage of development, its greatest needs are now assistance with developing and implementing its own policies and programs to support key reform challenges. This includes strengthening institutions, fostering inter-ministerial coordination and cooperation, and building the capacity of the public sector.

In 2012 Australia and the World Bank established a partnership to provide such support. Drawing upon Australia’s and the Bank’s strengths and experience in Vietnam, the partnership has allowed us to work together on shared priorities and achieve greater impact. This second phase of the partnership will build on previous successes to further progress Vietnam’s priority economic reforms, targeting 5 key issues: Trade and Competitiveness, Transport, Mekong Delta Climate Resilience, Gender and Ethnic Minorities.

Expected results:

  • Trade and Competitiveness: Vietnam supported to leveraging global integration for inclusive growth and job creation.
  • Transport: increased efficiency, sustainability and connectivity of transport infrastructure and services for the benefit of all citizens of Vietnam.
  • Mekong Delta: strengthened regional planning and coordination, and improve knowledge and decisions on climate-resilient investments and livelihoods in the Mekong Delta.
  • Gender: strengthened policies and programs to address emerging challenges to and pursue opportunities for gender equality in Vietnam.
  • Ethnic Minorities: strengthened policies and programs on poverty reduction to more effectively target the needs of the diverse ethnic minority groups in the mountainous northern region, and particularly the needs of ethnic minority women and youth.

For more information of Australian’s Aid in Vietnam, visit: http://vietnam.embassy.gov.au/hnoi/cooperation.html

For more information about the World Bank in Vietnam, please go to: www.worldbank.org/vietnam