The FINANCIAL — The Asian Development Bank (ADB) has approved a $100 million policy-based loan to develop Viet Nam’s finance sector, aiming to support long-term economic growth and tackle rising income inequality.
The Financial Sector Development and Inclusion Program represents a medium to long-term partnership in finance sector development between ADB and the Government of Viet Nam. The program is consistent with the government’s Socio-Economic Development Strategy, 2011–2020, and ADB’s Strategy 2030 in addressing the remaining poverty and income inequality.
The program supports several government reforms to strengthen, deepen, and broaden the outreach of Viet Nam’s formal finance sector. These include improvements in the legal and regulatory framework to resolve non-performing loans and restructure weak credit institutions, the creation of an enabling environment for the money market and government bond market development, and policy measures to introduce market-based approach to financial inclusion through microfinance and financial technology.