Mobilizing Finance for Local Infrastructure Development in Vietnam : A City Infrastructure Financing Facility

Vietnam stands out as one of the most dynamic emerging countries in the East Asia and Pacific region. Since major reforms in the 1990s, the country has experienced an annual average growth rate of 6-7 percent, and extreme poverty rate has fallen from over 50 percent to 3 percent. Yet, the rapid grow...

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Main Authors:	Campanaro, Alessandra, Duc Dang, Cuong
Format:	Book
Language:	English
Published:	Washington, DC: World Bank 2018
Subjects:	MUNICIPAL INFRASTRUCTURE FINANCE CREDIT ENHANCEMENT SUBNATIONAL DEBT MUNICIPAL DEVELOPMENT FUND FINANCIAL INTERMEDIARY REGULATORY FRAMEWORK LOCAL GOVERNMENT WHOLESALE FACILITY SUBNATIONAL BORROWING MUNICIPAL FINANCE INFRASTRUCTURE FINANCE
Online Access:	http://hdl.handle.net/10986/29804

id	okr-10986-29804
recordtype	oai_dc
spelling	okr-10986-298042021-04-23T14:04:54Z Mobilizing Finance for Local Infrastructure Development in Vietnam : A City Infrastructure Financing Facility Campanaro, Alessandra Duc Dang, Cuong MUNICIPAL INFRASTRUCTURE FINANCE CREDIT ENHANCEMENT SUBNATIONAL DEBT MUNICIPAL DEVELOPMENT FUND FINANCIAL INTERMEDIARY REGULATORY FRAMEWORK LOCAL GOVERNMENT WHOLESALE FACILITY SUBNATIONAL BORROWING MUNICIPAL FINANCE INFRASTRUCTURE FINANCE Vietnam stands out as one of the most dynamic emerging countries in the East Asia and Pacific region. Since major reforms in the 1990s, the country has experienced an annual average growth rate of 6-7 percent, and extreme poverty rate has fallen from over 50 percent to 3 percent. Yet, the rapid growth and decentralization process have brought significant pressure on provincial governments in terms of local infrastructure investments and urban services delivery. With an annual shortfall of US$9 billion in funding for local infrastructure investments, provincial governments in Vietnam need to move toward a more market-driven financing model. This transition will require enhanced financial and technical capacity of local governments as well as an enabling environment for subnational borrowing. This report explores the development of a pilot financial instrument that could catalyze the subnational borrowing market in Vietnam. The report presents the findings of three assessments, which focused on (a) the borrowing capacity and creditworthiness of selected provincial governments, (b) the capacity of the commercial banking sector to invest in provincial governments, and (c) the current status of Vietnam's regulatory framework. The findings of this report will be useful to policy makers in Vietnam, providing an understanding of the key issues associated with a shift toward a more affordable and efficient local infrastructure financing model and presenting a preliminary roadmap for development of a pilot instrument. The report will also be of interest to policy makers in other transition countries that are facing similar challenges. 2018-05-10T18:31:48Z 2018-05-10T18:31:48Z 2018-05-24 Book 978-1-4648-1287-3 http://hdl.handle.net/10986/29804 English International Development in Focus; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research Publications & Research :: Publication East Asia and Pacific Vietnam
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	MUNICIPAL INFRASTRUCTURE FINANCE CREDIT ENHANCEMENT SUBNATIONAL DEBT MUNICIPAL DEVELOPMENT FUND FINANCIAL INTERMEDIARY REGULATORY FRAMEWORK LOCAL GOVERNMENT WHOLESALE FACILITY SUBNATIONAL BORROWING MUNICIPAL FINANCE INFRASTRUCTURE FINANCE
spellingShingle	MUNICIPAL INFRASTRUCTURE FINANCE CREDIT ENHANCEMENT SUBNATIONAL DEBT MUNICIPAL DEVELOPMENT FUND FINANCIAL INTERMEDIARY REGULATORY FRAMEWORK LOCAL GOVERNMENT WHOLESALE FACILITY SUBNATIONAL BORROWING MUNICIPAL FINANCE INFRASTRUCTURE FINANCE Campanaro, Alessandra Duc Dang, Cuong Mobilizing Finance for Local Infrastructure Development in Vietnam : A City Infrastructure Financing Facility
geographic_facet	East Asia and Pacific Vietnam
relation	International Development in Focus;
description	Vietnam stands out as one of the most dynamic emerging countries in the East Asia and Pacific region. Since major reforms in the 1990s, the country has experienced an annual average growth rate of 6-7 percent, and extreme poverty rate has fallen from over 50 percent to 3 percent. Yet, the rapid growth and decentralization process have brought significant pressure on provincial governments in terms of local infrastructure investments and urban services delivery. With an annual shortfall of US$9 billion in funding for local infrastructure investments, provincial governments in Vietnam need to move toward a more market-driven financing model. This transition will require enhanced financial and technical capacity of local governments as well as an enabling environment for subnational borrowing. This report explores the development of a pilot financial instrument that could catalyze the subnational borrowing market in Vietnam. The report presents the findings of three assessments, which focused on (a) the borrowing capacity and creditworthiness of selected provincial governments, (b) the capacity of the commercial banking sector to invest in provincial governments, and (c) the current status of Vietnam's regulatory framework. The findings of this report will be useful to policy makers in Vietnam, providing an understanding of the key issues associated with a shift toward a more affordable and efficient local infrastructure financing model and presenting a preliminary roadmap for development of a pilot instrument. The report will also be of interest to policy makers in other transition countries that are facing similar challenges.
format	Book
author	Campanaro, Alessandra Duc Dang, Cuong
author_facet	Campanaro, Alessandra Duc Dang, Cuong
author_sort	Campanaro, Alessandra
title	Mobilizing Finance for Local Infrastructure Development in Vietnam : A City Infrastructure Financing Facility
title_short	Mobilizing Finance for Local Infrastructure Development in Vietnam : A City Infrastructure Financing Facility
title_full	Mobilizing Finance for Local Infrastructure Development in Vietnam : A City Infrastructure Financing Facility
title_fullStr	Mobilizing Finance for Local Infrastructure Development in Vietnam : A City Infrastructure Financing Facility
title_full_unstemmed	Mobilizing Finance for Local Infrastructure Development in Vietnam : A City Infrastructure Financing Facility
title_sort	mobilizing finance for local infrastructure development in vietnam : a city infrastructure financing facility
publisher	Washington, DC: World Bank
publishDate	2018
url	http://hdl.handle.net/10986/29804
_version_	1764470421071069184

Mobilizing Finance for Local Infrastructure Development in Vietnam : A City Infrastructure Financing Facility

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