IFC and Australia launch new partnership to boost private sector growth
IFC and Australia launch new partnership to boost private sector growth
At least $300 million in private investments is expected to be unlocked in Vietnam through a new partnership between International Financial Corporation and the Australian government. The partnership will help Vietnam to continue on its path to green and inclusive growth while addressing the needs emerging from the pandemic.
The new AU$15 million ($10 million) Vietnam 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 the nation.
Regulatory and policy reform, more sustainable and inclusive business practices, and banking that serves women-led businesses and climate-friendly solutions will be the priority areas of the partnership. Initially, six projects valued at AU$5.7 million ($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 Vietnam’s private sector continue to thrive. Encouraging green, resilient, and inclusive growth is at the heart of the partnership,” said Australia’s Ambassador to Vietnam Andrew Goledzinowski.
Over the next five years, the IFC-Australia partnership will work with Vietnam's public and private partners to unlock the private capital required for its climate and development priorities, especially in key growth sectors including infrastructure, agriculture, manufacturing, and tourism.
IFC country manager for Vietnam, Cambodia, and Laos Thomas Jacobs said, “With COVID-19 and the global food and energy crises already depleting public resources, the private sector can play a key role in the country’s transition to a low-carbon growth model if the conditions are right and the policies are in place.”
“We are delighted to further deepen the partnership with Australia to promote the private sector’s participation in Vietnam’s ambition to become a high-income country and achieve carbon-neutral status in the years ahead,” he added.
The World Bank Group estimates that Vietnam – one of the most vulnerable countries in the world to climate change – needs additional investments of about 6.8 per cent of GDP a year, or a total of $368 billion in present value terms, up to 2040 to realise its commitment of net-zero emissions by 2050. Half of the total cost, or $184 billion, is expected to come from the private sector.
