HANOI, DECEMBER 20, 2002― The Board of the World Bank approved earlier this week the release of US$150 million for the Poverty Reduction and Support Credit (PRSC) for Vietnam. The PRSC provides financial assistance to implement Vietnam’s multi-year economic reform program.

The objective of the multi-year program is to help return the economy to higher growth and faster poverty reduction. This will be ensured by enhancing transparency and accountability of state-owned enterprises, banks and public finances and by increasing competition through trade reforms and further liberalization of the private sector.

“Release of the second tranche of the PRSC signals that Vietnam is on the right track by implementing the first-year of its economic reform program.” said Mr. Klaus Rohland, World Bank Country Director for Vietnam. “Structural reforms need to be continued if Vietnam wants to achieve its targets of higher economic growth without increasing inequality. Fast progress in liberalizing trade and integrating into the world economy will require faster progress on the restructuring of state-owned enterprises and state-owned commercial banks if these companies wants to be competitive".

In addition, Vietnam receives support for its economic reform program, through co-financing of the PRSC, from Denmark, the Netherlands, Sweden and the United Kingdom.

“Vietnam is committed to a strategy that emphasizes the links between economic growth, social inclusion, and poverty reduction as demonstrated by the adoption of the Comprehensive Poverty Reduction and Growth Strategy (CPRGS). The PRSC instrument gives us a tool where we can sit down with the Government and identify concrete measures that will help implement the strategy.” said H.E. Mr. Gerben de Jong, the Netherlands Ambassador to Vietnam.