International Donors Continue to Support Vietnam

The World Bank (WB) made the biggest pledge of US$1.66 billion; ADB's commitment of US$1.566 billion, an increase of US$200 million; EU's pledge down by US$70 million to US$893.48 million. Minister of Planning and Investment Vo Hong Phuc said, Japan had not announced its assistance commitment. If including Japan's pledge, the figure must exceed US$6 billion.

Despite economic difficulties this year and a challenging year ahead, Vietnam's medium-term outlook is very promising if the Government can maintain driving force for economic reforms, which has brought successes in this decade. The Government of Vietnam needs to be cautious in setting targets for 2009, particularly growth and investment goals. Similarly, designing appropriate economic policies should consider growth with increasing outside risks, protect institutions, improve quality of data and telecommunication, and push up structural reforms.

 

As a consequence of global economic recession, it will be uneasy for the economy next year. We hope that the Government of Vietnam will keep close track of the situation, be careful in risk analysis and balance. We are especially concerned about the negative impacts on the poor, SMEs, and the vulnerable. With other development partners, we wish to provide strong support to the Government of Vietnam to cope with changes. We are willing to help Vietnam necessary funds within our ability.

 

Vietnam should continue to fight against hunger and poverty for the ethnic minorities, newly poor people in urban areas and farmers lack of cultivation land. Development partners applaud the Government's commitment in placing the objective of hunger eradication and poverty alleviation in the core of socio-economic policies. This objective is exceptionally important in the global economic recession, to protect allocated state budget for social sector in 2009. We hope the Government will use information more efficiently to make public the process of policy making, implement local programmes uniquely and efficiently in terms of expenditure, reinforce the social security and patronisation network.

 

The European Union still commits to maintain relationship with Vietnam to be both a long-term partner and a friend in difficulties or in prosperity. Recently, we have started negotiation of a new and ambitious Partnership Cooperation Agreement. This is an evidence of a relation and framework to improve and strengthen this relationship.”

 

Vietnam will continue to be a bright spot in the international community in commitment of using ODA efficiently. The issue is how to help Vietnam create real changes in implementing assistance programmes at the ministry and local levels. There is promising progress but Vietnam should make more efforts to cope with challenges, such as capability limitation at the local level, improve uniqueness in national procedures among ministries and branches to help the society maximise their potential contributions to the development of Vietnam.

 

Donors are ready to spend significant resources on the National objective programme to respond to climate changes via budget direct support facility, technical assistance facility and investment projects. Donors pledge to coordinate to integrate and consolidate national procedural process to implement the National objective programme against climate changes and other climate initiatives. Vietnam should adopt measures of cutting carbon amount in urban, transport, housing and industrial development, and particularly efficient policies on energy and recycled energy.