US Ambassador to Vietnam Daniel J. Kritenbrink on May 2 announced that the US government, through the United States Agency for International Development (USAID), will be providing an additional US$5 million to mitigate the impact of the Covid-19 pandemic on the Vietnamese economy.

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The funds will be utilized to bring much needed resources to bear immediately, including supporting private sector recovery by i) enhancing access to finance for businesses; ii) improving business support capacity during an expected surge in demand; and iii) partnering with Vietnamese government stakeholders to bolster the government’s relief interventions.

“Even though the private sector was hit hardest by the Covid-19 pandemic, the additional funds will help lift Vietnam out of this crisis enabling the country to continue its march towards upper-middle income status. This assistance reinforces our commitment to supporting a strong, prosperous, and independent Vietnam,” Ambassador Kritenbrink said in a statement.

Over nearly eight years, USAID assistance has strengthened the ability of enterprises in Vietnam to scale operations, improved the business enabling environment, trained emerging leaders, reduced the time and cost of trade, and enhanced the national and provincial legal and regulatory framework to drive private sector growth.

USAID in April also announced assistance of almost US$4.5 million to meet Vietnam’s priority Covid-19 outbreak health response needs. These funds are being used for technical support for preparedness and response; surveillance and case-finding; public health screening at points of entry; laboratory diagnostic capacity; community education and engagement; and infection prevention in health care settings; among other.

Over the last 20 years, the US poured more than $1.8 billion into Vietnam, including $706 million in the health sector.