AFD’s contribution to Vietnam’s development targets

Vietnam

AFD’s contribution to Vietnam’s development targets

AFD’s action within the framework of the 2011-2015 National Socio-Economic Development Plan is based on 4 cornerstones for this period:

To develop and modernize financial, banking and non-banking sectors. On the one hand, AFD wishes to contribute to sector reforms and capacity building/best practices/ governance programs for financial, banking and non-banking institutions. This includes microfinance institutions via sectoral programs such as the Financial Sector Development Program Loan (FSPL) and the SME Development Program Loan. On the other hand, the Hanoi Agency strives to meet financial institutions’ demand for a wide range of long-term financial instruments in order to meet market requirements. Requests for environmental investments in the form of “green” credit lines receive specific attention.
To support decentralization and local authorities. The three priority sectors to support the decentralization and devolution process for investment decisions are: environmental infrastructure, health and education facilities. This policy is applied via the allocation of financing and municipal investment funds.
To adapt urban infrastructure and public market services. Such infrastructure and services are an important issue for the National Development Plan as they are formidable engines for growth and poverty reduction. AFD firstly operates to provide a sustainable improved water supply and sanitation to cities. Our agency also strives to promote a balanced energy market in order to support sustainable growth. Finally, our operations also focus on modernizing and adapting to changing transportation flows (urban public transport, regional rail transport corridors, support for institutional reforms).
To promote a new dynamic in rural economies. Vietnam's entrance in the WTO created a profound structural change in the traditional system of rural production. It has also accelerated the mutation of the present economy into a competitive agricultural industry with high added value and improved quality. Although these changes have contributed to the reduction of poverty by increasing revenue for some farmers, for others it has also led to migration and increased. AFD consequently gives priority to 3 areas for operations: to support changes by providing targeted technical assistance, to increase added value for production and the diversification of activities in rural areas and, finally, to strengthen socio-economic infrastructure.