WB provides Vietnam $221.5 mln loan for pandemic recovery

Lasting 30 years with a grace period of five years, and provided through the WB’s International Development Association, the $221.5-million credit encourages policy reforms under two pillars.

The first supports an inclusive economic recovery by lessening the tax burden on enterprises, improving access to financial assistance among vulnerable groups, narrowing gender gaps in the workplace, and promoting financial inclusion.

The second pillar helps to green trade policies, accelerating the adoption of e-government, and strengthening the uptake of renewable energy.

The government has moved quickly in recent months on the implementation of these reforms, the WB stated, noting that the approval of mobile money licenses and the roll out of electronic invoice systems in big cities and provinces are examples of this.

The pace of reform is expected to accelerate as part of the recovery package to be discussed at the National Assembly of Vietnam, the country’s top legislature, next week.

"I believe the range of policy actions supported by this operation will not only create a strong foundation for immediate recovery from the Covid-19 crisis but also benefit Vietnam in the longer run," said Carolyn Turk, WB country director for Vietnam.