MANILA - VIETNAM will get a US$15 million (S$22 million) loan from the Asian Development Bank (ADB) to help poorer areas catch up with the economic boom elsewhere in the country, the Manila-based lender said on Thursday.

Vietnam wants to cut poverty to 10 per cent of the population by 2010, having already made significant strides in slashing it to below 20 per cent from more than 58 percent in 1993, a bank statement said.

Over the last 20 years, Hanoi's economy has transformed to become one of the fastest growing economies in Asia, with an average gross domestic product growth of 7.5 per cent over the past 10 years.

However, certain areas in the northern and central regions have a poverty incidence of over 30 per cent. These regions are home to nearly 57 per cent of Vietnam's poor.

'Some groups have benefited less from economic growth and are vulnerable to social and economic marginalisation. Low-income households face a vicious cycle of remaining poor due to difficulties in accessing health and education services,' said the bank country director Ayumi Konishi.

The loan aims to improve the quality of education, access of the poor to health services, and promote social protection while helping them secure land ownership.

Meanwhile, the bank also approved US$5.55 million in technical assistance to help Hanoi's neighbour Laos develop the private sector, particularly small and medium-sized businesses.

The focus of reforms should be on 'reducing transaction costs and ensuring a stable investment climate,' said ADB economist Kelly Bird.

Laos' economy has been growing at robust rates in the past few years, and reforms would help the economy grow above 7.0 per cent this year. This has cut the poverty rate to 33 per cent in 2003 from 46 per cent in 1992. -- AFP