International Finance Corporation ( IFC), the World Bank's private sector arm, plans to double its annual investment in Vietnam over the next three years, and continue support for the government in both financial sector and overall business climate reforms, a visiting IFC official said in Hanoi Thursday.

The IFC has annually poured 50-75 million U.S. dollars into Vietnamese enterprises in recent years, and the investment is expected to double over the next three years, Lars Thunell, the IFC's executive vice president, told reporters, noting that the corporation will keep on promoting growth of state-run commercial banks and insurers, developing infrastructure, including power plants and toll ways via public-private partnership, and improving the business environment.

Future priorities for the IFC include making investment and offering technical assistance in such sectors as labor-intensive industries, agribusiness, tourism, information and communication technologies.

Vietnam, though having consistent annual economic growth of around 7 percent, young and vibrant population, substantial natural resources, and a strong commitment to improving the business environment and joining the world economy through the World Trade Organization and other trade pacts, must still overcome such major challenges as increasing global competition, financing of large investment in infrastructure, and infant capital market, he said.

Supporting Vietnam's transition to a more market-based economy by directly financing and advising its private firms since 1992, the IFC has so far financed over 25 companies to the tune of nearly 500 million dollars.

Source: Xinhua