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ADB backs Vietnam policy reforms

THUrsday - 19/01/2012 15:41
HANOI - The Asian Development Bank (ADB) and the Government on Tuesday signed a US$24.8 million loan agreement to support policy reforms needed for fostering the country’s inclusive growth and ensuring further poverty reduction.

The ADB program loan provides parallel financing to the Poverty Reduction Support Credit framework supported by a number of development partners.

Through the Poverty Reduction Support Credits, the Government can carry out a wide range of policy reforms in the areas of business development, social inclusion, natural resource management and governance to ensure successful implementation of the Ten-Year Socioeconomic Development Strategy 2011-2020, and the Socioeconomic Development Plan 2011-2015.

The nation’s poverty rate declined significantly from 15.5% in 2006 to 9.5% in 2010 as a result of the country's rapid economic growth and improved social protection programs. However, selected groups remain vulnerable to poverty. The poverty incidence among ethnic minority groups remains very high, at more than 50% in 2009.

High inflation due to the macroeconomic imbalances has eroded some progress in poverty reduction that the country has made in recent years. To overcome the macroeconomic difficulties and mitigate the adverse impacts of the global economic crisis, the Government has committed to continue implementing reforms with a focus on macroeconomic stabilization and economic restructuring.

“Poverty reduction cannot be sustained without inclusive economic growth,” said Tomoyuki Kimura, ADB country director for Vietnam. “Further efforts should be made to accelerate reforms to strengthen institutional and human capacity, governance, and policies to address the development challenges and to promote economic growth,” he said.

Author: CS

Source: vietnamnew

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