World Bank, Vietnam signs $507 million financing agreements

The World Bank signed $507 million in credit agreements with the State Bank of Vietnam last week. 

This international financing covers four major projects that will help Vietnam reduce poverty, sustain agriculture and improve public transportation. 

“The signing signals the close partnership between Vietnam and the World Bank, and we look forward to even more comprehensive cooperation in areas of strategic importance to the country,” Victoria Kwakwa, the World Bank’s country director for Vietnam, said. 

The financing will go toward: the Sustainable Agriculture Transformation Project, the Livestock Competitiveness and Food Safety Project, the Second Northern Mountains Poverty Reduction Project and the Ho Chi Minh City Green Transport Development Project.

The Sustainable Agriculture Transformation Project will receive $238 million in credit as part of the deal, much of which will go toward improving coffee and rice production in the Mekong Delta. 

The Ho Chi Minh City Green Transport Development Project will receive $124 million to create a new bus corridor in Ho Chi Minh City. The 14-mile long route will provide transportation for up to 28,300 passengers a day.

The Second Northern Mountains Poverty Reduction Project will receive $100 million to continue supporting efforts to reduce poverty in the poorest region of Vietnam, including the six provinces of Hoa Binh, Son La, Dien Bien, Lai Chau, Lao Cai and Yen Bai.

The final $45 million will go toward the Livestock Competitiveness and Food Safety Project, which aims to improve animal husbandry practices in order to guarantee food safety while lowering the cost of feeding animals.