HANOI - THE World Bank on Friday said it was lending communist Vietnam US$60 million (S$88.9 million) for a project to modernise its central bank with better training and technology.

The credit would help the State Bank of Vietnam and other institutions 'to reform and modernise the financial sector by improving delivery of their main functions in line with international standards', said the bank.

Much of the loan would be used 'to build a modern, centralised information and communications technology platform to support the State Bank of Vietnam's evolving role as a central bank', the World Bank said in a statement.

The project would also help the Credit Information Centre and the Deposit Insurance of Vietnam with funding from the International Development Association, the Washington-based World Bank's concessional arm.

'The project is aimed at contributing to the achievement of the government's strategic goal of a stable and sound financial sector in Vietnam', said Mr Xiaofeng Hua of the World Bank's East Asia and Pacific region.

'This effort is critical in ensuring Vietnam's sustainable economic growth and continued progress in poverty reduction, especially at a time of global financial turbulence'.