IFC, Australia launch new partnership to boost private sector growth in Viet Nam

The partnership will help Viet Nam continue on its path to green and inclusive growth, while addressing needs emerging from the COVID-19 pandemic.

The new AUD15-million (US$10 million) Viet Nam Private Sector Development Partnership aims to create inclusive and sustainable private investment opportunities by enabling a transparent, predictable, convenient, and cheaper way to do business in Viet Nam, for women and men.

Regulatory and policy reform, stronger sustainable and inclusive business practices, and banking that serves women-led businesses and climate-friendly solutions will be priority areas of the partnership.

Initially six projects valued of AUD5.7 million (US$3.8 million) have been endorsed for implementation.

The partnership between Australia and IFC is a natural fit given our shared and strong interests in seeing Viet Nam's private sector continue to thrive. Encouraging green, resilient, and inclusive growth is at the heart of the partnership, said Australia's Ambassador to Viet Nam Andrew Goledzinowski.

Over the next five years, the IFC-Australia partnership will work with Viet Nam's public and private partners to unlock private capital required for its climate and development priorities, especially in key growth sectors including infrastructure, agriculture, manufacturing, and tourism.

The IFC is delighted to further deepen the partnership with Australia to promote the private sector's participation in Viet Nam's ambition to become a high-income country and achieve carbon neutral status in the years ahead, emphasized IFC Country Manager for Viet Nam, Cambodia and Lao PDR Thomas Jacobs.

The World Bank Group estimates Viet Nam, one of the most vulnerable countries in the world to climate change, needs additional investments of about 6.8 percent of GDP a year, or a cumulative US$368 billion, in present value terms, through 2040 to realize its commitment of net zero emissions by 2050. Half of the total cost, or US$184 billion, is expected to come from the private sector.

The IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.