A counter at Hanoi’s taxation office (Photo: VNA) Hanoi (VNA) – The Asian Development Bank (ADB) has approved a 100million USD loan to develop Vietnam’s finance sector, aiming to supportlong-term economic growth and tackle rising income inequality.
ADB Financial Sector Economist Duong Nguyen said that while Vietnam’s economicperformance in recent years has been impressive, reforms are still yet to becompleted, especially those related to the finance sector.
“In addition, limited financial inclusion could exacerbate the rising incomeinequality and impact long-term sustainable economic growth. The FinancialSector Development and Inclusion Programme will support the Government’sefforts to strengthen financial stability, develop domestic capital markets,and enhance financial inclusion”, she said.
The programme represents a medium to long-term partnership in financedevelopment between ADB and the Government of Vietnam. The programme isconsistent with the Government’s socio-economic development strategy for2011–2020, as well as ADB’s strategy for 2030, in addressing poverty and incomeinequality.
It backs several government reforms to strengthen, deepen, and broaden theoutreach of Vietnam’s formal finance sector. These include improvements in thelegal and regulatory framework to resolve non-performing loans and restructureweak credit institutions, the creation of an enabling environment for the moneymarket and government bond market development, and policy measures to introducemarket-based approaches to financial inclusion through microfinance andfinancial technology.
ADB is committed to achieving a prosperous, inclusive, resilient, andsustainable Asia Pacific region, while sustaining its efforts to eradicateextreme poverty. Established in 1966, it is owned by 67 members, 48 of whichare from the region. In 2017, ADB operations totalled 32.2 billion USD,including 11.9 billion USD in co-financing. –VNA
ADB Financial Sector Economist Duong Nguyen said that while Vietnam’s economicperformance in recent years has been impressive, reforms are still yet to becompleted, especially those related to the finance sector.
“In addition, limited financial inclusion could exacerbate the rising incomeinequality and impact long-term sustainable economic growth. The FinancialSector Development and Inclusion Programme will support the Government’sefforts to strengthen financial stability, develop domestic capital markets,and enhance financial inclusion”, she said.
The programme represents a medium to long-term partnership in financedevelopment between ADB and the Government of Vietnam. The programme isconsistent with the Government’s socio-economic development strategy for2011–2020, as well as ADB’s strategy for 2030, in addressing poverty and incomeinequality.
It backs several government reforms to strengthen, deepen, and broaden theoutreach of Vietnam’s formal finance sector. These include improvements in thelegal and regulatory framework to resolve non-performing loans and restructureweak credit institutions, the creation of an enabling environment for the moneymarket and government bond market development, and policy measures to introducemarket-based approaches to financial inclusion through microfinance andfinancial technology.
ADB is committed to achieving a prosperous, inclusive, resilient, andsustainable Asia Pacific region, while sustaining its efforts to eradicateextreme poverty. Established in 1966, it is owned by 67 members, 48 of whichare from the region. In 2017, ADB operations totalled 32.2 billion USD,including 11.9 billion USD in co-financing. –VNA
VNA
