Agreements were signed between the WB and the State Bank of Vietnam in Hanoi on May 17.

The first credit worth US$50 million comes from the International Development Association, a lending arm of the WB.

Known as “Programme 135 Phase 2”, the programme aims to support socio-economic development in around 1,644 of the country’s poorest communes and 2,500 poorest villages.

The second credit worth US$106 million will fund rural transport projects for 33 of Vietnam's northern and central provinces. The project is co-financed by the UK Department for International Development, which will provide US$25.4 million for road maintenance.

The WB funds showed that Vietnam has been one of the best performing economies in the world over the last decade with a year-on-year GDP growth rate of 7.3 percent per year during the period between 1995-2005.