Vietnam Pays Pack US$27Mln to WB

Vietnam Pays Pack US$27Mln to WB

The Vietnam government has paid back US$27 million in outstanding official development assistance (ODA) credit to the World Bank since the repayment began two years ago.

The figure, which is equal to only 0.3 per cent of the government’s revenue and 0.1 per cent of the country’s exports, is a very tiny fraction that Vietnam has to pay back to the WB, said Klaus Rohland, the WB country director for Vietnam.

The figure is, therefore, completely manageable given the country’s current positive economic growth and foreign hard currency earnings, he told local media.

He also eased any worries over Vietnam’s overall ODA debts of US$14.5 billion – excluding grants – as the country’s total repayment is equal to only 3 per cent of its annual exports.

“Right now, foreign debt is not a concern in Vietnam,” he said.

“If Vietnam continues to use the ODA funds prudently and carefully, there is no reason why donors should decrease ODA to Vietnam,” he also said.

Since it resumed operation in Vietnam in 1993, the WB has given Vietnam total ODA credit of US$5.3 billion, to be repaid in 40 years, including a 10-year grace period.

Apart from the WB, other major donors to Vietnam include the Japanese government, the Japan Bank for International Cooperation (JBIC) and the Asian Development Bank (ADB).

VIR