Vietnam is still transitioning to a market-based economy. The Bank’s partnership with Vietnam since 1993 has contributed to achieving notable results.
As of September 12, 2014, the Vietnam's portfolio consists of 47 IDA/IBRD operations and 6 stand-alone trust funds projects, with total net commitments of US$ 8,537 billion. Similarly, the IFC and the MIGA programs in Vietnam have increased significantly. Over the last three years, IFC’s commitment reached more than US$2 billion. MIGA Vietnam guarantee exposure level has increased from less than US$20 million prior to FY13 to US$679.5 million gross exposure level in FY14.
Vietnam received the first loan from the IBRD, the Bank’s lending arm for middle-income and poorer creditworthy countries, in 2009, to support a program of public investment reforms. It marked a closer step of the country to reach the lower middle-income status in the following year.
In FY13, a World Bank’s new financing instrument called the Program for Results or PforR was introduced in Vietnam with the first operation for rural water and sanitation was approved. The program, which links disbursements of funds directly to the delivery of verifiable results, is the first PforR to be approved by the Bank in the East Asia and Pacific region and the first in the rural water supply and sanitation sector.
Access to rural credit services has improved significantly. Over the past decade, a growing number of rural households gained access to credit—for farming and small business activities—for the first time. The Bank’s First and Second and the Third Rural Finance Projects contributed to this trend as well as to the strengthening of several rural financial institutions. The last two projects financed more than 535,000 sub-projects, leveraging total investments equivalent to US$1.23 billion and generating new sources of employment. More than a third of the borrowers in the Third project accessing formal financial institution credit for the first time and more than half of the borrowers are women. (See video and story)
Water supply and sanitation facilities have expanded. Urban water supply has doubled in small towns to 60% between 2006 and 2009 and is up from 75% to 95% in cities for the same period. Rural access to clean water has seen an increase from 36% to 70% between 1999 and 2009. The World Bank has helped to support this development through investments in rural water and sanitation in the Red River Delta Region and through innovative programs such as the Global Output-Based Aid funded project in partnership with the East Meets West Foundation. Between 2005 and 2013, the Red River Delta Rural Water Supply and Sanitation Project provided access to clean water for nearly 1.3 million people in four provinces through community-based approaches. Households received access to low-interest loans to build or rehabilitate more than 48,000 hygienic toilets and sanitation facilities, increasing the percentage of households with hygienic toilets from 25 percent to 87 percent. (See the video and story)
Urban sanitation remains a priority area for support in the urban sector. The Ho Chi Minh City Environmental Sanitation Project has a transformational impact on the city, directly benefitting over 1.2 million people with improved sanitation and reduced flooding while at the same time serving as a new city asset that can be enjoyed by the people of Ho Chi Minh City. (See the story and video)
Disaster early-warning and forecasting capacity and integrated disaster risk management has been improved. Implemented in 12 provinces, the Disaster Risk Management Project helped constructed 11 major flood and storm mitigation infrastructure, such as safe harbor, river dykes, evacuation roads, drainage pumping stations. More than 210,000 villagers in 30 communes implemented structural measures, including multi-purpose evacuation centers and drainage canals, along with non-structural measures, such as the development of Safer Commune Plans and evacuation drills. (View the story and photo slideshow)
Electricity now reaches 95% of the population. Every day for the past ten years, 9,000 people have been connected to the grid for the first time in Vietnam. The country doubled its power generation capacity from 12,000 MW in 2005 to 25,000 MW in 2010. Under the Second Rural Energy Project, over 2.7 million people in some of the poorest parts of Vietnam gained access to electricity as 555,327 households were connected to the national grid. (Watch the video)
Over 90% of the population is now connected by all-weather roads. Working in 33 provinces, the Third Rural Transport project is reaching some of the most difficult mountainous regions of Northern Vietnam, linking poor and marginalized communities to better markets and services. Averaging 4.5% of GDP investment, Vietnam is the leading investor in Asia in its roads infrastructure to make space for the economy to grow, allow cities to move, and lift the remaining population out of poverty. (Watch the video)
95% of motorcycle riders now wear a helmet. With 6.5 fatalities per 10,000 vehicles/year, over six times those in Japan, accidents on Vietnam’s roads are a major contributing factor to a national injury crisis. Addressing one of the highest accident rates in the world, the Vietnam Road Safety Project is working to bring health, education, police, and highway agencies together to save lives.
Improving living standards in remote mountainous areas. Under the first Northern Mountains Poverty Reduction Project, 353,871 households have benefitted from improved health care, and over 118,000 households have access to clean water, significantly improving the health of local people. A follow-on project has built on these earlier gains plus strengthen community disaster risk preparedness and pilot market linkage service initiatives. (See the story and video)
Primary education doubled and more disadvantaged children were enrolled. The proportion of primary students in full day programs doubled from 25% in 2005 to 50% nationwide. Children in disadvantaged districts increased enrollment to 94% (compared to 97% nationally) while girls enrollment in secondary school now exceeds boys at 78% to 77%. Personalized lessons brought a more hands-on approach to learning for ethnic minority students in 49 primary schools. The New School model, which used innovative teaching and learning practices in the classroom, was piloted in 24 primary schools in six provinces in 2010. It was so successful that the government of Vietnam decided to scale it up to all 63 provinces. (See the video and story)
Health conditions and access to health services have been improved. Thanks to the Mekong Regional Health Support Project, an estimated 16 million people in the Mekong Delta region are benefiting from improved health services and facilities. From this number, 2.5 million people also have better access to health insurance. About 10,000 health workers have received health-related courses and additional training to meet the region’s demands. The HIV/AIDS Prevention Project has significantly contributed to keeping Vietnam’s HIV/AIDS prevalence rate below 0.3 per cent of its population. (Watch the video)
Women rights to land titles increased. Following the success of two World Bank-supported pilot projects in the early 2000s, the government passed a Land Law making it mandatory for all land titles to be issued jointly in the names of husbands and wives (watch the video). The Bank-supported Vietnam Land Administration Project aims to issue some 5 million (jointly held) land titles by 2013.