The Vietnamese Government on April 7 issued an instruction, asking the ministries of Finance, and Planning and Investment to verify the management and usage of Official Development Assistance (ODA) resources, aiming to ensure proper capital disbursement.
The move is allegedly among the government’s efforts to regain international donors’ confidence after the rampant corruption scandal at the PMU18, which is using around VND29.6 trillion (US$1.87 billion) largely from ODA, and before the mid-term Consultative Group Meeting scheduled for June.
In order to effectively use ODA as well as to prepare for the CG meeting, the relevant agencies will have to examine the mechanisms of ODA allocations, usages, management, even drawing lessons from the controversial corruption case of the Project Management Unit 18 under the Ministry of Transport, according to the instruction.
The ministries were asked to report to the Prime Minister by late May at the latest.
Currently, Vietnam's ODA debts are under control, accounting for 17 per cent of state budget investment and 11 per cent of total social investment, said Duong Duc Ung, a senior advisor for the Ministry of Planning and Investment.
The country’s ODA debt indicators in comparison with GDP, export revenues and debt services are all below international standards.
ODA disbursed in Vietnam is estimated at more than $10 billion, meaning that each Vietnamese person currently owes US$37.5.
However, a state media evaluated that this figure is not small as up to 4.6 million people are living under the poverty line with income of less than $1 a day.
The debt burden will become heavier as Vietnam is expected to borrow some $10.9 billion in 2006-2010, the media said.
Vietnam is now one of the world’s biggest ODA country recipients. International donors pledged a record amount of $3.748 billion in ODA to the country for 2006, much higher than loans of $3.438 billion pledged last year.
As estimated, the country will have to spend between $10 billion and $11 billion to settle foreign debts in the next five years, equivalent to 6-7 per cent of the country’s total export turnover in the period.
VNA, Young People
Vietnamese
