10:52 | 24/05/2019 Finance - Banking
A 125 million USD credit has been approved by the World Bank (WB) Board of Executive Directors to assist Ho Chi Minh City in strengthening the institutional foundations for sustainable urban development.
This is the WB’s first budget support operation to a sub-national entity in Vietnam, marking a strategic shift in the bank’s engagement at the sub-national level from sector-specific investments to supporting cross-cutting policy and institutional reforms, the WB said in a recent press release.
The policy programme aims to remove institutional bottlenecks to enable Vietnam’s largest city and economic powerhouse to address some of its most pressing urban governance challenges. As a key growth pole driving economic modernisation and generating 21 percent of Vietnam’s GDP, the benefits of reforms in HCM City are expected to go beyond the city to the wider economy.
WB Country Director for Vietnam Ousmane Dione said as an emerging global megacity and commercial hub with significant opportunities, Ho Chi Minh City is also facing a host of serious urban challenges.
“Successful management of rapid urban growth requires effective and integrated urban governance as well as adequate investment in urban infrastructure and service delivery. Such interventions will have to be met within a constrained fiscal environment, reinforcing the urgent need for efficient resource mobilisation and allocation,” he added.
The programme is structured around the three pillars: integrated and transparent spatial information for urban management, strengthened management of public assets and liabilities, and enhanced delivery of priority municipal services.
The credit is provided by the International Development Association (IDA).