ODA Capital - Vital Source for Vietnam's Development

With an effort to ensure benefits for the poorest people, WB decided to donate US$197.8 million to the ‘Project on Customs Modernisation,’ the ‘Project on Red River Water Supply and Sanitation’ and the ‘Project on Natural Disaster Risk Management.’ The three projects are an important part of the national programme on poverty reduction and equality increase in Vietnam. Two projects on Red River Supply and Sanitation and Natural Disaster Risk Management will bring safe water and sanitation to rural areas and help protect people and assets from natural disasters, as well as bring information from the Government to the people.

These are the first projects to receive adaptable program loans (APLs), which help programmes according to each period, providing consecutive loans based on the results and experience of previous stage of the programmes. Concretely, the project on Red River water supply and sanitation will support the programme on water supply in Hai Duong, Nam Dinh, Ninh Dinh and Thai Binh, which is valued US$45.87 million. As a result, 800,000 farmers in these provinces will have access to tap water and 600,000 people will have access to standardised toilets. The waste water system will be also upgraded. A loan of US$86 million will be provided for the first phase of the Natural Disaster Risk Management Programme, which consists of two phases, to protect people and their economic assets, especially the poorest communities in danger zones. The programme also aims at promoting the effectiveness of long-term post-disaster recovery. The target will be achieved with structural and non-structural investment for minimising the effects of natural disasters, the recovery of infrastructure facilities after disasters, and capability building of national and local institutions in readiness in dealing with disasters and recovery.

 

A preferential credit of US$65.9 million for the Customs Modernisation Project is aimed at improving the effectiveness, accountability and transparency of Vietnamese customs service. The project is an important factor, supporting Vietnam’s accession to the World Trade Organisation (WTO) and protecting achievements of further integration into the world trade system. The project ensures that the customs service will make an effective contribution to the Government’s targets of creating favourable conditions for trade, budget revenues, trade statistics, community protection and national security.

 

I believe that with the Vietnamese Government’s efforts and precious assistance from the WB, the projects will end in great success, making a significant contribution to poverty reduction, socio-economic development and international integration of Vietnam. Over the past decade, the WB has always been an important partner of the Vietnamese Government in calling for, attracting and using ODA capital. This is a vital source for Vietnam’s socio-economic development. It is possible to say that WB’s assistance for Vietnam is comprehensive, in all fields ranging from administrative reform, environmental protection and natural disaster prevention to rural development.

Customs Modernisation is one of the major projects of the Vietnamese customs service, which aims at helping comprehensively reform and modernise the service, thus making a contribution to achieving the Government’s targets relating to socio-economic development, international and regional integration, investment attraction and tourism development. Also, the project will facilitate trade activities, increase the economy’s competitiveness, ensure budget revenue sources, and help Vietnam join and implement international commitments. The Red River Water Supply and Sanitation Project is the first phase of the Water Supply and Sanitation Programme, which consists of two phases sponsored by the WB within the Comprehensive Strategy on Water Supply and Sanitation of Government. Via the project, many households in northern rural areas will get access to safe water and standardised sanitation services, thus helping improve local people’s living standards and reducing poverty in these areas.

 

Vietnam is considered as one of the countries which have most natural disasters and suffers heavy consequences, producing negative impacts on its socio-economic development. Joining its efforts with the international community, the WB has actively been involved in and pledged long-term support for Vietnam’s natural disaster management and prevention. The project is the first phase of a two-phase programme, which receives APLs from the WB. Under the project, Vietnam will receive WB support to build a comprehensive framework for natural disaster management, including work and non-work investment to protect people and assets of communities in project beneficiary provinces from storms and floods. It is possible to say that the project has a great humanitarian meaning, attracting attention from many other international donors.