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Vietnam has averaged strong annual growth of 7 percent over the past decade, despite such threats to the economy as SARS, avian influenza, devastating floods and droughts, the imposition of tariffs, and anti-dumping lawsuits. Vietnam's Challenges The country still faces major challenges, including greater global competition, an urgent need to finance large investments in infrastructure, a state-dominated economy, and a capital market that is only in the early stages of development. High levels of poverty persist in some central and highland areas, and there is an uneven playing field for small and medium enterprises. Job creation also poses a challenge as many more young people join the labor market every year.
In recent years IFC has invested an average of $50-75 million annually in Vietnam. "We can double that, to somewhere between $100 million and $150 million, over the next three years," said Thunell. IFC on the Ground Thunell’s trip included meetings with senior government figures and representatives from Vietnam’s local and international business community, along with several visits to IFC client companies and project sites. At the Khai Vy Corporation’s manufacturing plant, Thunell saw at first hand how IFC is supporting the sustainable development of Vietnam’s forest products sector. IFC is providing this local manufacturer with working capital as well as with technical assistance in implementing responsible wood procurement practices. In the Bac Ninh Province, Thunell heard about the work that MPDF, IFC’s technical assistance facility, has been doing to simplify or remove administrative and regulatory barriers that impede business activity at the local level. The project includes a review of local administrative procedures to start and operate a business, with a focus on business registration and licenses. Other highlights of the trip included a question and answer session hosted by the American Chamber of Commerce, the European Chamber of Commerce, the Japan Business Association, and other business associations; a roundtable discussion with banking sector clients on IFC and the World Bank Group’s role in the financial sector; and meetings with Vietnam’s Deputy Prime Minister. IFC in Vietnam IFC has invested nearly $500 million in more than 25 companies in Vietnam since 1992. Since 1997, MDPF has been helping improve the business environment, develop commercial banking and other key business services, and enable small and medium enterprises to compete more effectively in the global economy. IFC also helped launch the Vietnam Business Forum in 1998 and continues to support this important mechanism for public-private dialogue. For additional information contact: Andrew Mak Hong Kong Tel: (852) 2509 8110 Fax: (852) 2509 9363 E-mail: amak@ifc.org or Ann Bishop Mekong Private Sector Development Facility International Finance Corporation Tel: (855) 2321 0922 (Ext 217) E-mail: abishop1@ifc.org |    |
