Socialist Republic of Vietnam

World Bank President Robert B. Zoellick wrapped up his two day visit to Vietnam Tuesday, offering broad support to help the country move to the next stage of development.

Vietnamese Prime Minister Nguyen Tan Dung (R) welcomes World Bank chief Robert B. Zoellick in Hanoi on Monday

“Vietnam has the potential to be one of the great success stories in development,” a World Bank press release quoted him as saying.

“It has already achieved one of the fastest improvements in living standards in the world, with a great reduction in poverty. Driven by the first stage of reforms and the benefits of trade and WTO accession, Vietnam is on pace to become a middle income country by 2010.”

“It has already achieved one of the fastest improvements in living standards in the world, with a great reduction in poverty. Driven by the first stage of reforms and the benefits of trade and WTO accession, Vietnam is on pace to become a middle income country by 2010.” WB Pres. R. Zoellick said.

The World Bank said it would help Vietnam boost social inclusion, improve governance, strengthen the business environment and focus on ecological improvement.

The World Bank would also be working with the government to share Vietnam’s successful experience in reducing poverty and developing the economy with other developing countries, Zoellick said.

“A strong replenishment of IDA [the International Development Association] this year by the donor community will help us to implement some of those lessons for the benefit of poor people elsewhere in the world,” he said.

Leaving none behind

During his visit, Zoellick spent a day in the mountainous Yen Bai province, one of Vietnam’s poorest areas, to better appreciate the challenges of rural development in Vietnam.

In Hong Ca Commune, Tran Yen District, Zoellick saw local infrastructure built under the IDA-supported Northern Mountains Poverty Reduction Project, co-financed by the UK’s Department for International Development.

The project has benefited 165,000 people from a number of ethnic groups in the province.

“I saw successful government initiatives supported by the World Bank to build infrastructure and increase the availability of electricity. These projects have shown that well-designed development projects can broaden opportunity to the poorest people,” Zoellick said.

Mr. Zoellick talked to the local community, and listened to Ha Giap Hung, a farmer, as he described how his life had changed so far.

Thanks to a bridge built under the project, Hung can now cross the stream next to his house to go to the field, even during flooding season. He can now afford a motorbike, which he only dreamt of before the bridge was built.

“Mr. Hung’s example shows that people can be better off with small investments tailored to the local needs. The World Bank can create opportunity and hope,” Zoellick said.

He also visited a 220kV substation in Yen Bai province, built under the Vietnam Rural Energy Project. The substation is a crucial middle point of the 220kV link between China and Vietnam.

It has proved to be effective in stabilizing the regional transmission network, reducing losses, improving power supply quality and meeting the growing energy demand of northern mountainous provinces.

The project has helped Vietnam expand its rural electrification program under which 92 percent of households nationwide now have access to electricity.

The WB chief later met with Prime Minister Nguyen Tan Dung and many senior officials.

He congratulated the Vietnamese government on the country’s achievements in transforming the economy and for spreading the benefits of growth widely.

“Decisions on land reform, market liberalization, investing in social sectors and infrastructure, and enabling the private sector have transformed this country in less than a generation. Vietnam and the World Bank have built a partnership based on mutual trust, and we will certainly continue our support in the coming years as a key development partner.”

“Decisions on land reform, market liberalization, investing in social sectors and infrastructure, and enabling the private sector have transformed this country in less than a generation. Vietnam and the World Bank have built a partnership based on mutual trust, and we will certainly continue our support in the coming years as a key development partner.” WB Pres. R. Zoellick.

Zoellick also discussed with government officials ways that the World Bank Group’s International Finance Corporation (IFC) can play a greater role as Vietnam relies increasingly on private sector dynamics and growth.

“IFC investments might encourage foreign investors in the financial, infrastructure and energy sectors,” Zoellick noted.

The Bank Group will support Vietnam’s efforts to increase the country’s competitiveness and improve governance, increase transparency and accountability, strengthen and deepen the financial sector, modernize social protection systems, improve environmental management and upgrade the quality and quantity of infrastructure. Central to this will be Vietnam’s announced plans to modernize public debt management and implement the anti-corruption law.

Zoellick met with representatives from the donor community, civil society, and business leaders and discussed with them Vietnam’s development challenges, aid coordination and investment opportunities.

He also visited a vocational class for disadvantaged youth, one of the civil society projects funded by the Vietnam Innovation Day, an initiative of the World Bank.

“It is important that we include all members of society in the development process. For development – indeed, for globalization – to be sustainable, economic growth has to reach everyone. We cannot leave people behind.”

Source: World Bank, Thanh Nien News