The ADB's country chief Ayumi Konishi said Vietnam's communist government had faced an economic downturn this year but had 'done extremely well, particularly in controlling inflation and reducing the trade deficit.'

'Given the global economic downturn, however, 2009 will be another difficult year, but the Asian Development Bank will continue to give strong support to the government and people of Vietnam,' he said at the loan-signing ceremony.

Vietnam's export-led economy grew by 6.2 per cent this year, according to government projections, down from 8.5 per cent last year, in part because of falling demand in its main overseas markets and falling commodity prices.

The ADB's official development assistance (ODA) includes US$25 million for poverty reduction, US$25.5 million to repair infrastructure destroyed by typhoons, and US$10 million to develop tourism, the bank said.

'As the government tries to stimulate the economy to ensure that the adverse impact of the global economic slowdown will not affect the poor and the vulnerable groups of people, we believe accelerated implementation of the ODA-assisted projects will be particularly effective,' said Mr Konishi.

'Implementation of the projects provides jobs for the people, and it can also stimulate consumption by those who benefit from the projects.' -- AFP