Denmark Provides 61 Million DKK to Support Poverty Reduction in Vietnam

from Scand Asia

By Kittisak Siripornpitak

Denmark has joined other donors, together with the World Bank, to co-finance the sixth Poverty Reduction Support Credit (PRSC 6) worth totally 365 million US dollars to support the implementation of Socio-Economic Development Plan 2006-2010 in Vietnam which is the 1st operation in the second cycle of PRSC, which will last for five years.

Five operations (PRSC 1-5) have been implemented successfully in 2001-2006. PRSC operations are channelled directly to the government budget to support sustainable growth and poverty reduction.

Denmark has been co-financing PRSCs since it’s beginning in 2001. Its support to PRSC 6 is provided in recognition for the progress accomplished in policy reforms in Vietnam over the last year. Other co-financiers include ADB, Australia, Canada, Germany, the EC, Ireland, Japan, the Netherlands, the UK and Spain.

“PRSC 6 represents a very important milestone in Vietnam’s reforms towards a market economy and poverty reduction” said Mr. Ajay Chhibber, World Bank Country Director for Vietnam, “The credit will provide further support to Vietnam’s reform program.

These reforms in business and financial sector development, better governance and social inclusion are vital steps that Vietnam needs to become a middle-income country by 2010.”

PRSC 6 supports reforms in four important areas, which are business development, social inclusion, natural resources and modern governance.