Vietnam to Disburse US$2.2 Bln ODA in 2008

Vietnam is expected to disburse US$2.2 billion of the official development assistance (ODA) in 2008, compared with US$2 billion in 2007 and US$1.8 billion in 2006, the Vietnam Economic Times reported.

 

The Ministry of Planning and Investment (MPI) said Vietnam is taking advantages in ODA attraction as the country is rated among the best ODA users.

 

By the end of the first quarter, ODA capital signed between Vietnam and donors reached US$369.06 billion, increasing 16 per cent on year, with US$342.69 million loans and US$26.37 million in non-refundable aids.

 

Some large projects include the southern coastal ring road worth US$150 million funded by ADB, the banking and finance program 3 worth US$75 million, the poorest secondary education project worth US$50 million, and the sixth poverty reduction credit program by Japan.

 

Despite economic difficulties, including soaring inflation, Vietnam will be still optimistic about ODA attraction in the second quarter thanks to its efforts in completing regulations on ODA management and use, said MPI’s External Economic Department.

 

In next three months, Vietnam will sign US$1 billion contracts with Japan to build key infrastructure projects, a US$10.8 million contract with the EU for the Vietnamese tourism human resource development project, and a EUR2.3 million contract with the Agency France of Development (AFD) for urban development project in Ho Chi Minh City.

 

Vietnam saw US$3.75 billion of pledged ODA capital in 2006, US$4.45 billion in 2007 and US$5.426 billion in 2008.

 

The country has continuously made new records in ODA attraction in the past five years. (Vietnam Economic Times)