To continue supporting Vietnam in its poverty reduction and growth objectives over the next five years, international donors pledged more than US$3.74 billion in assistance for Vietnam in 2006, compared to US$3.4 billion last year, at the conclusion of the 2005 Consultative Group (CG) Meeting for Vietnam that took place on December 6-7 in Hanoi, chaired by the Government of Vietnam and the World Bank (WB), with the participation of officials from Vietnamese ministries and organizations and representatives of about 50 bilateral and multilateral donors to Vietnam.
The next year’s ODA commitment for Vietnam is the largest amount so far. Of the total, the biggest donors are the EU: US$936.2 million, Japan: US$835.6 million, WB: US$750 million, ADB: US$539 million, France: US$397.7 million, China: US$200 million, Germany: US$114.7 million, and Korea: US$105.5 million. Japan is the biggest bilateral donor for Vietnam in the next year.
Donors and delegates congratulated Vietnam on its strong growth performance and remarkable success in poverty reduction, emphasised the importance of completing key reforms of the financial sector and State-Owned Enterprises (SOEs) for Vietnam to reach its full potential and continue to reduce poverty at a rapid pace. Delegates agreed that efforts should be continued to apply the consultative and outcome-focused approach of the Comprehensive Poverty Reduction and Growth Strategy (CPRGS) in preparing and implementing the new Socio-Economic Development Plan (SEDP) 2006-2010 and to fully reflect the principles of the Hanoi Core Statement in ODA and government.
“Our CG meeting takes place at a special juncture. The 2006-2010 plan will mark a turning point in terms of the quality of socio-economic development and the full integration of Vietnam into the world economy by joining the WTO. Never before has Vietnam’s socio-economic development plan been opened as widely to discussion and inputs as this one. Consultations have taken place not only with ministries, agencies, localities, and socio-political organizations, but also with local and foreign scientists and businesses, non-governmental organizations, overseas Vietnamese and international donors. In the next five years, besides the need for rapid development, more attention will be paid to sustainable development and the quality and efficiency of investment. With the new approach, the 5 year plan 2006-2010 will truly become a plan of the whole people,” Deputy Prime Minister Vu Khoan said in his opening remarks.
"The first five year plan of the new millennium achieved or exceeded its socio-economic development objectives. But many challenges remain to be addressed through the next SEDP. We highly value the comments from donors on the draft plan, and will continue to consult with all stakeholders through the first quarter of next year. I hope that the Government and the donor community will continue to reach consensus on effective measures for the achievement of development goals in the 2006-2010 period. To reach our development targets we are determined to make the best use of available resources, and look forward to continued support and assistance from our donor partners," said Meeting Co-Chair, Mr. Vo Hong Phuc, Minister for Planning and Investment.
While commending Vietnam's strong economic progress in the last few years and its record of prudent macroeconomic management, delegates emphasized the need to accelerate implementation of reforms to ensure continued rapid poverty reduction. Donors complimented the Government on its recently adopted ambitious roadmap for banking sector reform. They urged swift implementation of the measures to transform the State Bank of Vietnam into a modern central bank focusing on monetary policy and supervision of financial institutions, and to strengthen the autonomy and corporate governance of state-owned commercial banks through equitization with the participation of foreign investors. Delegates also took note of recent encouraging steps in the fight against HIV/AIDS but stressed the need for perseverance to overcome HIV/AIDS.
The Government reported on progress in the WTO negotiations, expressed its determination to accede as soon as possible, and also noted the various challenges in implementing WTO commitments.
Delegates at the meeting agreed that more effort should be put into accelerating public administration reforms. Donors encouraged the Government to make full use of the diagnostic study in the implementation of the anti-corruption law, and expressed their strong commitment to continue supporting the Government’s efforts in this area.
Donors complimented the Government for its progress achieved in improving aid effectiveness and implementing the harmonization action plan. Delegates welcomed and endorsed the “Hanoi Core Statement” to implement the Paris Declaration on Aid Effectiveness. "The time has come to move from statements to action and fully reflect the principles of the Hanoi Core Statement in ODA and government programs. The Government should take resolute measures to ensure that the SEDP will be clearly linked with sectoral and local-level plans, as well as budgetary practices. We for our part are committed to the implementation of the Hanoi Core Statement and to aligning EU assistance with the SEDP, once it is finalised and fulfils the requirements to qualify as a basis for EU development co-operation", said Mr. Robert Gordon, Ambassador of the United Kingdom, on behalf of the European Union.
In his closing remarks, Mr. Klaus Rohland, WB Country Director for Vietnam, underlined that "the open and frank exchanges on the new 5-year plan is a testimony to the strong partnership between the Government of Vietnam and its development partners based on trust and mutual accountability. The final plan will be an effective roadmap for improving the productivity of investment, to raise the quality of growth, and to enable all Vietnamese citizens realize their full development potentials. With development partners aligning their support to this plan, Vietnam will be well positioned to continue its past spectacular poverty reduction achievements and move rapidly out of low-development status", ended Mr. Rohland.
T.N
Vietnamese
