International donors and the government of Vietnam officials gathered at the Informal Mid-year Consultative Group’s Meeting held in Sapa, Lao Cai on June 5 and 6 focused on measures to boost effective usage of investments and ODA loans, state media said.
Vietnamese Minister of Planning and Investment Vo Hong Phuc and Acting Country Director of the World Bank Martin Rama co-chaired the event.
Deputy Prime Minister Truong Vinh Trong emphasized that facing difficulties and challenges, directly having affected lives of locals, the government of Vietnam will be able to overcome and focus on effectiveness of ODA usage.
“Vietnam does appreciate those donors who have financed and will provide with fresh and larger-scaled supports,” Trong said.
Sharing views with Trong, Vice President for East Asia and Pacific-World Bank, James Adam said that compared with six months ago, Vietnam’s economy is confronting several challenges such hefty trade deficit and high inflation.
Donors at the CG are interested in effectiveness of ODA loans and investment and are wondering whether ODA-funded projects are to be cut in 2008.
Minister of Planning and Investment Vo Hong Phuc said that the government plans to cut VND14 trillion (US$875 million) out of VND135 trillion (US$8.4375 billion) sourced from state budgets and g-bonds.
The government is considering transferring those projects to the BOT (build-operation-transfer)-based models, or directly sell to private sectors to improve effectiveness, the Phap Luat Thanh Pho Ho Chi Minh newspaper said.
This year, the government of Vietnam is expected to disburse US$2.5 billion-US$3 billion of ODA loans, Ho Quang Minh, head of the MPI’s External Economic Relations said.
The government has disbursed 40 per cent of the year’s target, Minh added.
Meanwhile, Chief Economist of UNDP, Jonathan Pincus highlighted that problems are in multimillion dollar projects. The government of Vietnam should list 100 biggest projects to choose 10 to suspend, then it can withdraw around US$2 billion.
Currently, the government of Vietnam is pressing provinces to report a list of projects to be halted. (Local sources)
Vietnamese
