[lbo-talk] WB helps reduce poverty and improve transportation in Vietnam

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Sat May 19 21:09:50 PDT 2007


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Last updated: 16:19 - May 18, 2007

WB helps reduce poverty and improve transportation http://www.nhandan.com.vn/english/life/180507/life_wb.htm

Nhan Dan Online- The World Bank (WB) will provide Vietnam with US$156 million in interest-free credit to further support the country's efforts to reduce poverty among ethnic minorities and communities in remote, mountainous areas and to expand its rural transportation network.

The credit agreements to these effects were signed on May 17 between the WB and the State Bank of Vietnam.

The first interest-free credit, worth US$50 million - one of three expected over the next five years - supports the Government's efforts aims to support socio-economic development in around 1,644 of the country's poorest communes and 2,500 poorest villages in the Programme 135.

The second interest-free credit worth US$106,25 million will fund the rural transport project for 33 provinces in northern and central region of Vietnam. The project will finance the rehabilitation and improvement of about 3,100 kilometres of the core rural roads network to ensure that rural communities are well connected to Vietnam's fast developing economy. The project is co-financed by the UK Department for International Development (DFID) which will provide US$ 25.4 million for road maintenance.

"The rural transportation program is an important element of DFID's support to the government of Vietnam's poverty reduction efforts. We are confident that this program will have real impact in reducing rural poverty," said Donal Brown, Head, DFID Vietnam.

"The demand of investment in rural infrastructure is still very large," Governor of the State Bank of Vietnam Le Duc Thuy said. "Third Rural Transport Project and First Programme 135 phase 2 will be marched with a part of this development demand, will bring the benefits to people and will narrow the gap between lagging areas with the rest of country," he added. World Bank Acting Country Director for Vietnam, Martin Rama said "The Government has shown strong leadership in revamping its poverty targeted program, going beyond infrastructure towards sustaining livelihoods in disadvantaged communes. Combined, these two projects hold great promise for achieving sustained impact on the ground".

The WB's figure shows that Vietnam has been one of the best performing economies in the world over the last decade. Real GDP has on average grown by 7.3% per year during 1995-2005 and per capita income by 6.2% per year. Per capita income has increased from US$260 in 1995 to US$715 currently. According to the Vietnam Household Living Standard Survey, the percentage of people living in poverty has fallen from 58.1% in 1993 to 19.5% in 2004. The proportion of poor people now is one-third of what it was a decade ago.

DIEU THUY

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