Foreign Donors Pledge US$330Mln for Vietnam's Poverty Reduction

Eight foreign donors have decided to fund US$330 million to help Vietnam implement the second phase of a socio-economic development program for ethnic minority and disadvantaged communes (Program135) in the 2006-10 period.

 

The donors are the World Bank, the Australian Agency for International Development (AusAID), the Irish Agency for International Development (IrishAid), the UK Department for International Development (DFID), the International Fund for Agricultural Development (IFAD), Finland, the Swedish International Development Agency (SIDA) and the United Nations Development Program (UNDP).

 

A memorandum of understanding (MoU) was signed in Hanoi July 6 the Vietnamese Government and representatives of the eight donors.

 

The aid will be used to support production modes, transfer agricultural production into commodity production and market development, provide basic infrastructure facilities, enhance the capability of local officials in planning, and help local people gain access to basic social services.

 

The Vietnamese government will pour VND12.9 trillion ($809.3 million) into the second phase of Program 135 which is expected to slash the poverty rate special disadvantaged regions to below 30 per cent.

 

The first phase of the program helped 736 communes escaped poverty after a seven-year implementation 1999-2005.

 

Kso Phuoc, chairman of the Committee for Ethnic Minority and Mountainous Areas (CEMA) affirmed that Vietnam will effectively use the aid to fulfill the targets of the program.

 

The program is currently benefiting 1,644 disadvantaged communes nationwide. (Vietnam Economic Times, VNA)