Asian Development Bank praises Vietnam for reducing poverty

Mar 1, 2011, 9:00 GMT

Hanoi - The Asian Development Bank (ADB) on Tuesday hailed Vietnam for reducing poverty and improving living standards over the past two decades.

'Vietnam has been one of the fastest expanding economies in Asia for over the past 20 years, driven by exports, foreign investment and a growing private sector,' ADB president Haruhiko Kuroda said.

He said the poverty rate had fallen from over 58 per cent in 1993 to about 10 per cent by the end of 2010, and noted that the country had rallied from the global financial crisis.

Kuroda said the country had a bright future but also faced challenges to macroeconomic stability such as rising inflation, particularly commodities prices.

The ADB chief urged the government to continue reforming the state-owned enterprises, focus on the gap between the rich and poor, deal with climate change, and improve human resources and infrastructure to increase long-term economic growth and per capita income.

He said the development bank would lend 2 billion dollars to Vietnam this year, after 1.5 billion dollars in 2010.

Kuroda was in Vietnam to prepare for ADB's annual meeting to be hosted by Hanoi May 3-5. The meeting will examine development issues facing Asia and the Pacific.

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