“Macro- economic Stability to Ensure Sustainable Development”

At the meeting, the Development Partners congratulated the Government on success in the implementation of Resolution 11 and pledged to continue supporting the Government to implement this resolution. Government and Development Partners also assessed the impact of macroeconomic instability on the poor, vulnerable groups and small and medium enterprises, and discuss safeguards for the poor from the adverse impacts.

 

Addressing the conference, Deputy Prime Minister Nguyen Sinh Hung stated: The Government of Vietnam affirms that maintaining macroeconomic stability, thus ensuring social security, is a long-term goal. Government of Vietnam will consistently implement sustainable solutions proposed in Resolution 11 by the Government in order to achieve the long-term goal mentioned above.

According to Minister of Planning and Investment Vo Hong Phuc, the Government has closely directed the ministries to implement comprehensive and timely solutions now in place. These solutions are effective and increase confidence of the people and the international community inside and outside the country.

 

However, according to Mr Benedict Bingham, Senior Residential Representative of the International Monetary Fund (IMF) in Vietnam, despite achieving initial success, confidence in the overall success of this strategy is still very fragile. Mr Benedict Bingham also said that to improve confidence, the Government should give a strong signal that they will continue to implement the following Resolution 11 in 2011 and set clear objectives to restore and maintain macroeconomic stability over the medium term.

Expressing concern about the possibility of stopping the implementation of Resolution 11 soon, Australian Ambassador, Mr Alastair Cox, representing the Development Partnership said: "The implementation of Resolution 11 could be prolonged to 2012. We remain concerned that Vietnam may also be hit by waves of macroeconomic instability, if they do not implement radical reform."

 

According to the development partners, policies, programmes and mechanisms for poverty reduction and appropriate social security play an important role in ensuring that the poor will have access to security measures and social assistance when a crisis occurs. However, macroeconomic instability and high inflation has further revealed the limitations of the social security system in Vietnam.

 

According to Mr Bruce Campbell, Resident Coordinator of the United Nations in Vietnam, the Government should have more flexibility to address emerging issues and ensure that the urban poor, HIV-infected people and people with disabilities, migrant workers and employees of non-formal sector, have access to benefits and social support. The social protection services, including child care support, are also important to help women have access to formal employment opportunities.

 

The development partners appreciated the government efforts in promoting policies of social protection, unemployment insurance and emergency assistance for the poorest households and affirmed that they "will support Vietnam Government in this important work.”

 

Ms Heather Riddell, Ambassador of New Zealand, on behalf of the Quartet (Switzerland, Canada, New Zealand and Norway) noted the progress Vietnam has achieved in supporting ethnic minorities. However, she said, “The group also recommended that the government continue to ensure that ethnic minorities are widely consulted in order to better benefit from policies to address inequality, as well as to make the community more sustainable in economic terms.”