With the theme “Building the foundation for sustainable development,” the Meeting of Vietnam’s Consultative Group (CG) has opened in Hanoi on December 6-7. This theme is both the target and action agenda of the Vietnamese government in the development process of the country. This year, sponsors have pledged to provide Vietnam with a total of US$ 5,426 million, including the biggest contribution of US$1,350 million from ADB and the second biggest, from Japan, of US$1,111 million.
This year’s CG will focus on the following issues: the achievements and challenges in the process of socio-economic development this year and the plan for socio-economic development in 2008; preparation for socio-economic development strategy in 2011-2020; the progress rate in carrying out WTO commitments; solutions and potential impacts on the society; procedure harmonisation and sponsor efficiency; issues in public administrative reform and the restructure of the governmental apparatus; progress in government anti-corruption initiatives; and legal reform mechanisms.
According to Prime Minister Nguyen Tan Dung, over the past 15 years, sponsors via ODA loans have companioned with Vietnam in building and developing the economy and society, even when they are in difficulty. Thanks to the support of sponsors via ODA loans, many socio-economic infrastructure units of Vietnam have been improved. Such social sectors as healthcare, education, mechanism improvement and management capacity, environment protection, rural development and poverty reduction have seen great progress and achievements, thanks to the great support of ODA loans.
“However, Vietnam is still an under-developed country with low income and facing a lot of difficulties and challenge. Pressing issues include the low quality, efficiency and economic competitiveness, the accelerating market price, low-quality infrastructure systems, serious traffic congestion and accidents, and under-qualified human resources failing to meet the demand for development. Administrative reform and anticorruption activities, although posting positive results, still face many problems,” said the Prime Minister. In addition, the Prime Minister also emphasised the fluctuation of the world market, climate change and epidemics which are facing Vietnam.
The year 2008 is the key time for implementing the 2006-2010 plan. In the action agenda, the Vietnamese government defined that it will try to complete socio-economic targets set for the five-year period next year. In 2009, Vietnam will strive to fulfil and surpass all targets set under the five-year plan. Accordingly, Vietnam should reach average per capita income of over US$1,000 by 2010, to be no longer considered a poor country. “In order to reach this important goal, the government defines an important role for ODA loans. The disbursement rate of ODA loans in 2007 exceeded the plan by 5 per cent, rising 10 per cent on year. This represents the great effort of both Vietnam and sponsors in jointly dealing with problems and harmonising procedures,” the Prime Minister commented.
Especially, the Prime Minister said that it is the proper time to talk about further goals; Vietnam’s progression from a developing country to become an industrialised and modern country by 2020. The development demand of the country in the coming phase will be great; therefore, it will need more ODA loans. “Vietnam hopes that sponsors will provide more ODA loans for Vietnam to build infrastructure, train qualified human resources, enhance management capacity and reduce poverty,” the Prime Minister expressed.
Mr Ajay Chhibber, WB’s Director to Vietnam commented, "The development of Vietnam is very impressive. Vietnam has developed towards benefit equalisation for everyone. The development story of Vietnam will need more profound research because it can be a model for many other developing countries in the process of poverty reduction”. He also noted the importance of carrying out WTO commitments to achieve sustainable and proactive development. These commitments are not only on trade reform, but also reform in other industries and mechanisms. Vietnam also needs to invest in infrastructure. Roads, railways, ports and power plants are all necessary for sustainable development.
Cautioning that the quality of growth was a necessary focus to avoid the middle-income trap, which has created difficulties for other countries in the world as they graduated from low-income status, Mr Ayumi Konishi, the Country Director of the Asian Development Bank stated that, “Vietnam should focus on undertaking key reforms and on the quality of growth. The country’s attractiveness to investors depends on a favorable legal and administrative environment. The benefits of global integration can only be grasped by economies whose competitiveness is not undermined by high transaction costs caused by red tape, bureaucracy, and an unresponsive administrative system. Strengthening Vietnam’s public administration system is essential to transforming the country into a modern, industrialized and prosperous nation.”
The Australian Ambassador, H.E Bill Tweddell, reflecting on consultations with the Like Minded Donor Group, the European Union and the WB, remarked that Vietnam’s economy has been flexible to adjust to new opportunities and challenges, but cautioned that there was much work to be done to ensure this growth is sustained and delivers benefits to all its people. “As a starting point,” he said, “Vietnam should press ahead with its long-standing program of economic reform, which should include careful and timely implementation of all its WTO commitments. As Vietnam moves to middle income status, it must step up efforts on basic reforms that encompass the environment, regional development and impacts on vulnerable groups.”
Lan Anh
Vietnamese
