Friday, 22 February 2008

ADB continues to fund Vietnam’s GMS projects

22/02/2008

VietNamNet Bridge – Asian Development Bank (ADB) President Haruhiko Kuroda said ADB is likely to allocate up to 1.8 billion USD in the next few years to help Vietnam carry out the Greater Mekong Subregion (GMS)’s projects.

“The total volume of lending and associated grant assistance needed to realize these projects will be determined through detailed feasibility studies, and we envisage the level of our overall assistance to Vietnam in the next few years will be in the range of 1.3-1.8 billion USD or so,” said ADB President Kuroda, who ends three-day working visit to Vietnam on February 21.

GMS projects included in ADB’s indicative loan and grant programme for Vietnam for 2008-2010 focus on fields such as tourism, environment, health care, transportation and water supply and sanitation.

Last year, of the 34 ADB-assisted investment projects for the GMS, totaling 9.9 billion USD, Vietnam participated in nine projects totaling 2.2 billion USD. These include the Ho Chi Minh City-Phnom Penh Highway Improvement Project, the East-West Transport Corridor Project, the GMS Tourism Development Project, the GMS Communicable Disease Control in the Border Areas Project, and the GMS Southern Coastal Corridor Project.

The ADB President hailed Vietnam’s efforts and important role in the pursuit of the GMS strategy, saying Vietnam is a major proponent of the transformation of the GMS “transport” corridors into full-fledged “economic” corridors, including through the early implementation of trade and transport facilitation measures – steps that would greatly improve the subregion’s competitiveness.

Regional cooperation efforts have already been yielding concrete results, he said and took an average anual increase of 24 percent from 1992 to 2006 in Vietnam’s combined exports to the other countries in the Mekong Region, including Cambodia, China, Laos, Myanmar and Thailand as an example for the results.

“During the same period, Vietnam’s real GDP grew by 7.7 percent on average, and its openness ratio, defined as the ratio of total trade to GDP, more than doubled from 50 percent to 135 percent, indicating the growing trade integration of the country with the region and the world,” he added.

(Source: VNA)

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