Representatives from the Government of Vietnam, 22 donor countries, 13 international agencies, 4 international NGOs, and the private sector gathered for the informal mid-year Consultative Group (CG) meeting in Nha Trang during June 9-10, 2006.
At the meeting, the Vietnamese Government and donors exchanged views on Vietnam’s socio-economic development, measures to boost economic growth and ODA disbursement, with the aim of improving efficiency in the use of ODA for economic growth and poverty reduction in Vietnam. They also discussed solutions for implementing Vietnam’s socio-economic development goals in the second half of 2006 and measures to fulfill Vietnam's 2006-2010 Socio-Economic Development Plan (SEDP).
Donors evaluated Vietnam’s progress in granting licenses to foreign-invested projects, inflation control and other related issues.
Deputy Prime Minister Pham Gia Khiem opened the meeting by taking stock of the challenges facing Vietnam. “The meeting is taking place at a defining moment. With tremendous efforts, we have fulfilled the important task to conclude bilateral negotiations for WTO accession with all partners. The National Assembly will debate and approve the 5-year Socio-Economic Development Plan, 2006-2010, at its ongoing session. The Plan reflects the harmony of factors needed for sustainable development, gives strong emphasis to social issues, poverty reduction and the realization of the Millennium Development Goals. However, a plan is only as good as the outcomes it results in. We look forward to donors’ continued support to our efforts to monitor the progress of this Plan, and remain committed to raising aid effectiveness in line with the Hanoi Core Statement. Going forward, it is imperative to strictly implement the Anti-Corruption Law, adopted by the National Assembly recently, and to investigate and handle corruption cases in a timely and open manner,” said the Deputy Prime Minister.
Donors congratulated Vietnam on taking a major step towards WTO accession through successfully concluding its bilateral negotiations with the US, and noted that implementing the reforms entailed by WTO commitments should help Vietnam complete its transition to a market economy. Donors expressed their support for a strongly coordinated program of activities to address post-WTO issues.
In a separate session, delegates took stock of recent Government initiatives to fight corruption, and donors pledged their continued support to further strengthen these efforts, based on sound diagnostic analyses. Delegates commended the Government Inspectorate for its work on the new law on anti-corruption, and took stock of recent efforts to strengthen other aspects of administrative, public finance, legal, and judiciary reform, required to combat corruption in the longer-run. These reforms were seen as integral components of a modern governance system that supports a market economy. Delegates noted that while such reforms may not confer immediate results in the fight against corruption, they will be the most effective or perhaps the only way to do so in the medium to long term.
Sharing the outcome of the recent special audit of PMU1 prompted by the public concerns on PMU 18 case , Mr Ayumi Konishi, ADB Country Director for Viet Nam voiced his concern that “It should borne in mind that the current discussion on the issue should not result in adding administrative layers which in fact can have adverse impact on the transparency and efficiency. What is needed is the simplification of the system, and to make the system transparent. Decentralization and empowerment accompanied by accountability is the key.”
Government and Donors discussed how to improve aid effectiveness through prompt implementation of the “Hanoi Core Statement” and its key principles of Government ownership, alignment of donor support, harmonization and simplification, managing for results and mutual accountability.
Delegates noted that progress in the area of harmonizing procedures continues to be good. They expressed their strong commitment to continue the promising efforts in implementing the Hanoi Core Statement, and to ensure that ODA commitments are translated into swift disbursements, and to support Government’s efforts in rationalizing ODA project management mechanisms. At the same time as donor procedures for delivering aid are being harmonized, donors expressed a willingness to support enhancing Government’s own systems and rely more on these for disbursing funds. But they noted that increased reliance on such modalities will need to be accompanied by strong measures to prevent mismanagement in the use of ODA funds.
Delegates commended recent steps taken in the health sector towards more sector-wide ODA approaches with increasing use of Government systems. Recent efforts to strengthen coordination in the context of the HIV/AIDS Donor Harmonization Working Group were also highlighted. It was agreed that progress on a set of concrete actions to improve coordination and program efficacy should be reported at the next CG meeting. Delegates emphasized the importance of continuing the efforts to eliminate stigma and discrimination against people living with HIV/AIDS. Donors suggested that a robust strategy to combat HIV/AIDS should involve a review of current policies towards commercial sex workers and drug addicts, including an assessment of the effectiveness of rehabilitation centers.
In his closing remarks, Deputy Prime Minister Pham Gia Khiem commended the success of this meeting and again confirm the strong commitment of the Vietnamese Government in the successful implementation of the new Five Year Socio-Economic Development Plan, reforming and completing the legal framework, greater integration with the global and regional economy, and improving ODA efficiency.
Lan Anh
April 24–25, 2026
Kinh Bac Cultural Center, Bac Ninh Province
Vietnamese
