Socialist Republic of Vietnam

 
International donors on Thursday pledged to provide Vietnam with $US 3.4 billion in official development assistance, or ODA, in 2005 at the World Bank-chaired Consultative Group meeting in Hanoi.

About $US 2.14 billion was pledged by individual nations, with $100 million coming from international non-governmental organizations and another $1.2 billion from multilateral institutions like the World Bank.

Up to $170 million of the increased pledges for 2005 were to compensate for changes in foreign exchange rates.

Japan remains the top single donor at $ 902 million, followed by France with a pledge of $ 444 million, up three times from the $125 million pledged for this year.

At last year’s meeting, foreign donors pledged to loan Vietnam $ 2.8 billion.

At this year’s gathering, donors agreed to step up the efficiency of developmental aid to Vietnam via stronger cooperation with the country’s government agencies.

New ODA plans will help Vietnam carry out its socio-economic development programs from 2006 to 2010, donors said.

The Asia Development Bank, or ADB, will work with the Vietnamese government and ODA donors to formulate common development principles to fulfill Vietnam’s short-term and medium-term development goals in the most efficient way, said ADB director B. Phillips.

At the meeting donors also discussed Vietnam’s progress in its socio-economic programs between 2001 and 2005 and its poverty reduction strategies.

Medium-term economic growth and poverty reduction mainly depend on the follow-up of cautious macro-economic policies and stronger reforms, said Shogo Ishii, an official from the International Monetary Fund, or IMF.

Financial and banking reforms are of great importance when fast credit growth sparks concerns that quality of growth is uncertain, Mr. Ishii commented.

In the next five years Vietnam will complete its transition to a market economy, said WB country director Klaus Rohland.

It is necessary to consolidate the market economy, and the government needs to get involved in areas out of the market’s reach such as poverty reduction and social activities, Mr. Rohland said.

Reported by Xuan Danh – Translated by Hieu Trung.
Story from Thanh Nien News
Published: 02 December, 2004, 23:53:45 (GMT+7)
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