From March 21 to 29, 2011, United Nations Independent Expert Cephas Lumina paid a working visit to Vietnam to assess the effects of foreign debt and other related international financial obligations on the realization of human rights and the achievement of the UN Millennium Development Goals (MDGs). He also explored the impact of the global economic downturn on Viet Nam’s debt burden, human rights and MDGs.
While commending Viet Nam on its remarkable progress towards fulfilling the MDGs, Mr Lumina said, Viet Nam has achieved three out of the eight MDGs well ahead of schedule: halving its poor, ensuring gender equality and making primary education available to all. It is making significant progress towards achievement of the remaining MDGs. With the demonstrated commitment of the Government and the continued support of its development partners, he believed that Viet Nam can achieve the remaining MDGs by the target date.
“In the last decade, Viet Nam’s income per capita has risen from US$390 in 2000 to US$1,200 in 2010. More than seven million jobs have been created. Viet Nam’s impressive success in socio-economic development is evidenced by its recent attainment of lower middle-income status. These achievements bear testimony to the political will of the Government to improve the socio-economic conditions of its people,” said Mr Lumina.
Despite this commendable progress, the country faces a number of challenges, including those linked to its “lower middle-income” status, including the so-called “middle-income country trap,” according to which non-concessional loans will replace concessional loans and grants offered through official development assistance (ODA). ODA has played an important role in advancing human development in Viet Nam. Last year, it supplemented nearly 11 percent of the total social investment and 17 percent of the total state budget.
The country’s greater integration into the global economy has been a mixed blessing. While integration has resulted in better trade and investment opportunities, enhanced flow of goods and services may also occasion social problems in sectors of the population, especially among the most vulnerable groups. Another possible consequence of increased foreign investment is the widening income gap between skilled and unskilled workers.
Mr Lumina stressed that the impact of climate change poses another challenge. Viet Nam is prone to environmental hazards and is vulnerable to sea-level rise. He also called for continued international support for Vietnam to mitigate this problem.
As regards human development model in Vietnam, Mr Lumina appreciated the Vietnamese Government’s placement of the people of Viet Nam at the centre of the national development strategy. According to him, in order to fully ensure that principle, “it is important that national economic and social policies and programmes are firmly anchored in a human rights-based framework which underscores participation, transparency and accountability.” In that context, “the citizens of Viet Nam are not only the main beneficiaries of Government’s economic and social development programmes, they are also the most important stakeholders in the country’s development,” he said.
On the sustainability of the country’s foreign debt and its effect on the MDGs, Mr Lumina said: “In the context of rising foreign debt, Vietnam will have to pay more than US$1 billion of foreign debt, including interests, this year and it necessarily consider impacts of rising debt burdens on the full enjoyment of human rights and the realization of the MDGs.”
According to recent reports on Vietnam’s foreign debts, foreign debts are currently estimated at US$29 billion and account for over 40 percent of the gross domestic product (GDP) of Vietnam this year.
Mr Lumina pointed out the two issues that require urgent attention of Vietnam: addressing the budget and trade deficits.
In addition, there is need address the challenges of access to information. In order to enhance transparency and accountability in the management and use of public resources, the Government should ensure availability of accurate and timely information on, inter alia, debt and ODA. These measures would be important complements to the Government’s development efforts.
Box: Mr Lumina is a Zambian lawyer who holds a PhD in international law/human rights. He was appointed 'Independent Expert on the effects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights' by the Human Rights Council in 2008. He is independent from any government or organization and serves in his individual capacity. The mandate of the Independent Expert covers all countries. During this official visit to Vietnam, he has met with officials from government agencies, development partners, non-government organisations and research institutes.
Mai Anh
Vietnamese
