USTDA GRANT SUPPORTS SUB-SOVEREIGN FINANCING IN VIETNAM

HO CHI MINH CITY (June 28, 2004) – Earlier today, the U.S. Trade and Development Agency (USTDA) awarded a $350,000 technical assistance grant to the Ho Chi Minh City Investment Fund for Urban Development.  The grant will be used to examine Vietnam’s legal, regulatory and institutional framework for sub-sovereign financing; perform a case study of Ho Chi Minh City’s municipal bond issuance; and review the possibility of revenue-backed infrastructure financing for other cities in Vietnam.

The grant was conferred in a signing ceremony held at the Ho Chi Minh City’s People’s Committee.  Ms. Emi Yamauchi, U.S. Consul General in Ho Chi Minh City, signed the grant agreement on behalf of the U.S. Government.  Ms. Giao Thi Yen, General Director, signed the agreement on behalf of the Ho Chi Minh City Investment Fund for Urban Development.

The USTDA grant awarded today responds to the need to mobilize Vietnam’s domestic sources of capital.  It also reflects the U.S Government’s overall commitment to the Asia-Pacific Economic Cooperation (APEC) forum’s objective of advancing regional economic growth and prosperity.

The USTDA-funded technical assistance will facilitate economic development in Vietnam by promoting a domestic capital market and financial mechanisms that will contribute to the implementation of infrastructure projects.  In particular, the assistance will analyze and recommend ways in which Vietnam’s sub-national governments can access domestic financial markets to plan, equip, and finance their infrastructure needs.  The project will also examine how the World Bank, Asian Development Bank and other donor institutions can best facilitate that process. 

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries.  The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.  USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development.  In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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