World Bank loans $221 mn to Vietnam for economic recovery from Covid-19

The World Bank has signed an agreement with Vietnam in the amount of $221.5 million to finance the country's recovery from the coronavirus pandemic.

"The government of Vietnam and the World Bank has signed an agreement for financing of US$221.5 million to support Vietnam's recovery from the COVID-19 pandemic through policy reforms aimed at improving financial inclusion and spurring greater environmental resilience," the World Bank release said on Monday.

The loan will be provided in a form of budget support for a period of 30 years with a grace period of five years, the release said.

The loan-linked reforms will include easing the existing tax burden on business entities, improving access to financial assistance for vulnerable groups, and reducing gender gaps in workplace, the release added.

The environmental part of the recovery plan will focus on green trade policies, acceleration of the e-government adoption, and renewable energy uptake, according to the release.