WB backs Vietnam’s efforts to join global value chains
WB backs Vietnam’s efforts to join global value chains
The World Bank has pledged to help Vietnam achieve its goal of joining global value chains as part of its strong strategic partnership with the nation, the group’s chief economist Pinelopi Goldberg said at a meeting in Hanoi on Monday with Deputy Prime Minister Vuong Dinh Hue.
Goldberg was in Vietnam to attend the Vietnam Reform and Development Forum 2019, which took place last Thursday, reported the Vietnam News Agency.
Deputy PM Hue expressed gratitude to the economist who has promoted the strategic partnership between the global lender and Vietnam and has supported its policies and solutions to stabilize the country’s macroeconomy.
In addition to policy consultation, the WB has provided Vietnam with official development assistance and preferential loans worth some US$24 billion, of which some US$18 billion has been disbursed.
The Government considers the loans an important financial resource that can help the country address poverty and stimulate investment for sustainable growth, he said.
He also commented on plans to discuss with Goldberg and other WB experts details of their strategic partnership, priorities tied to Vietnam’s socioeconomic development strategy for the 2021-2025 period and the effects of developments in the global economy on Vietnam, particularly amid the trade tensions between the United States and China.
Vietnam has a high degree of economic openness, but the of its economy is relatively modest and its involvement in the global economy remains limited. Therefore, it is necessary to enhance competitiveness and move up on global value chains, according to the Deputy PM.
He also sought the lender’s recommendations on issues related to agriculture, rural development and farmers, urban and regional economic development and regional economic coordination.
Goldberg noted that the WB is committed to supporting the country.
She acknowledged that the country has done well with job creation while engaging in global value chains, but to improve workers’ incomes and become a high-income country, the country should get involved in deeper production stages and move higher in value chains.
For example, the country’s agricultural producers should seek ways to export processed and high-value products rather than raw materials, she remarked.
She pointed out that the country’s industries often use primitive models and that technological innovation was needed to ensure advancement.
She also urged the Government to reform tertiary education and vocational training, with a focus on soft-skill training for students and workers.
Both sides also looked into opportunities and challenges arising from the Fourth Industrial Revolution and policies to ease the private sector’s involvement in sci-tech development.
