The World Bank (WB) will offer Vietnam a preferential credit of 175 million U.S. dollars to help it sustain economic growth and reduce poverty, local newspaper Vietnam Economic Times reported Thursday.
Under an agreement signed here Wednesday between the WB and the State Bank of Vietnam, the 6th poverty reduction support credit ( PRSC) will be used to help the country complete the transition towards a market economy, preserve social inclusion, better manage natural resources and environment, and strengthen governance.
"The 6th PRSC represents a very important milestone in Vietnam's reforms towards a market economy and poverty," said Ajay Chhibber, WB Country Director for Vietnam.
"The credit will provide further support to Vietnam's reform program. These reforms in business and financial sector development, better governance and social inclusion are vital steps that Vietnam needs to become a middle-income country by 2010, " he noted.
Vietnam's per capita income has increased to 715 dollars currently from 260 dollars in 1995, and the proportion of poor people now is one-third of that a decade ago, according to the WB.