Press Release: IFC and Australia Launch New Partnership to Boost Private Sector Growth in Vietnam
At least $300 million in private investments in Vietnam is expected to be unlocked by a new partnership between IFC and the Australian Government. The partnership will help Vietnam continue on its path to green and inclusive growth, while addressing needs emerging from the COVID-19 pandemic.
The new 15-million Australian dollar (US$10 million) Vietnam Private Sector Development Partnership aims to create inclusive and sustainable private investment opportunities by enabling a transparent, predictable, convenient, and cheaper way to do business in Vietnam, for women and men. Regulatory and policy reform, stronger sustainable and inclusive business practices, and banking that serves women-led businesses and climate-friendly solutions will be priority areas of the partnership. Initially six projects valued of AUD5.7 million (US$3.8 million) have been endorsed for implementation.
“The partnership between Australia and IFC is a natural fit given our shared and strong interests in seeing Vietnam’s private sector continue to thrive. Encouraging green, resilient, and inclusive growth is at the heart of the partnership,” said Australia’s Ambassador to Vietnam H.E. Andrew Goledzinowski.
Over the next five years, the IFC-Australia partnership will work with Vietnam’s public and private partners to unlock private capital required for its climate and development priorities, especially in key growth sectors including infrastructure, agriculture, manufacturing, and tourism.
“With COVID-19 and global food and energy crises already depleting public resources, the private sector can play a key role in the country’s transition to a low-carbon growth model but only if the conditions are right and policies are in place,” said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia and Lao PDR. “We are delighted to further deepen the partnership with Australia to promote the private sector’s participation in Vietnam’s ambition to become a high-income country and achieve carbon neutral status in the years ahead.”
The World Bank Group estimates Vietnam – one of the most vulnerable countries in the world to climate change – needs additional investments of about 6.8 percent of GDP a year, or a cumulative $368 billion, in present value terms, through 2040 to realize its commitment of net zero emissions by 2050. Half of the total cost, or $184 billion, is expected to come from the private sector.
Photo courtesy of John Gillespie.
Source: IFC (link opens in a new window)