Hanoi, Vietnam, August 28, 2003
—At the conclusion of week-long mission to Vietnam, International Finance Corporation Vice-President Assaad Jabre affirmed IFC’s commitment to engaging policy dialogue over private sector development and to seeking new opportunities, particularly in infrastructure, to support economic reforms through investment. This was Mr. Jabre’s fourth trip to Vietnam in his capacity as IFC vice president.
“Vietnam has come a long way in developing its private sector, which is playing an increasingly important role in the Vietnamese economy. The private sector can and should grow. The challenges ahead are not insignificant but there is reason to believe that they can be met,” Mr. Jabre said. He noted that in the two years since his last visit, enormous progress has been made toward integrating Vietnam into the global economy, specifically by developing a bilateral trade agreement with the United States and moving Vietnam toward World Trade Organization accession. “To become a player in the globalized economy, Vietnam now must improve the environment for private sector businesses by upgrading physical infrastructure to support the needs of rapidly growing economy.” IFC is willing and able to provide support in this effort, he said.
Already IFC is active in advising on private sector needs through the Vietnam Business Forum
(
http://www.vietnambusinessforum.org
) and by supporting research to help understand the needs of and impediments to private sector development. During this trip, Mr. Jabre signed a memorandum of understanding with the government of Canada, which is pledging $300,000 to support the activity of the Business Forum. IFC also launched a joint IFC-World Bank study on constraints faced by private companies,
Informality and the Playing Field in Vietnam’s Business Sector
(
http://www2.ifc.org/news/PlayingField.pdf
). Through the IFC-managed and donor supported Mekong Private Sector Development Facility, IFC also supports the training and capacity building needs of smaller companies. Through direct equity investments and loans, IFC has actively encouraged the development of financial institutions and financial markets, promoted the development of private health and education services, and supported local information technology companies.
IFC’s portfolio in Vietnam is one of the best performing in the region. Since 1994, IFC has approved over $600 million in 33 projects in Vietnam with total project costs exceeding $1.5 billion.
The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Since its founding in 1956 through FY02, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.
