The State Bank of Viet Nam and the World Bank in Viet Nam yesterday signed three credit agreements, worth a total of US$400 million.— VNA/VSN Photo

HA NOI (Biz Hub)— The State Bank of Viet Nam and the World Bank in Viet Nam yesterday signed three credit agreements, worth a total of US$400 million, to help Viet Nam with economic management reforms for higher productivity and competitiveness.

The funds will also go to support the implementation of the Higher Education reform agenda, and to raise school readiness for 5-year-old children.

The first Economic Management and Competitiveness Credit for Viet Nam will provide $250 million concessional financing to support reforms in fiscal policy, the financial sector, public administration and accountability, and state enterprise management.

It will also cover public investment management, efficiency of the business environment, and equity and transparency of the business environment.

The credit package will also help monitor macroeconomic policies that support the stabilisation efforts of the government.

Public Investment Management, SOEs and banking sector reforms are prominent themes in line with the government's priorities for structural reforms.

"I want to congratulate the Government on its stabilisation efforts over the past 18 months," said Victoria Kwakwa, the World Bank's country director for Viet Nam.

The funds will also go to support the implementation of the Higher Education reform agenda, and to raise school readiness for 5-year-old children.

"It is necessary to continue these efforts, and at the same time accelerate the pace of implementation of structural reforms in the restructuring of state-owned enterprises, public investment and banking sector."

The second credit worth $50 million supports the implementation of reform policies designed to strengthen governance, financing and quality of higher education.

The goals are to improve research studies and fiscal transparency as well as sustainability and effectiveness of the higher education sector.

The third project, the School Readiness Promotion Project, will raise school readiness for children entering primary education, in particular for those most vulnerable.

It will support elements of Viet Nam's national programme on Universal Early Childhood Education for 5-year-old Children 2010-15 with financing of $100 million.

The project supports efforts to expand full-day pre-school enrollments, improve capacity for preschool quality assurance and strengthen professional expertise of teachers and principals.

"To help prepare Viet Nam for the future, reforms from early childhood education through higher education are important along with building a culture of life-long learning," Axel van Trotsenburg, the World Bank Vice President for East Asia Pacific Region, wrote in a recent article published during his visit to Viet Nam. — VNS