Vietnam Targets to Disburse US$12Bln in ODA by 2010

Vietnam is expected to disburse between US$11-12 billion of official development assistance (ODA) from now till 2010, contributing to almost 9 per cent of the social investment in the period, according to the Ministry of Planning and Investment (MPI).

 

The investment in the period will continue focusing on agriculture and rural development in combination with poverty alleviation, modernization of socio-economic infrastructure in harmony with the environment, reinforcing the legal mechanism and human resources development, said MPI External Economic Affair Section Head Ho Quang Minh.

 

Minh also added the Vietnamese Government will try to work out new strategies, aiming to attract and tap this important financial source.

 

Duong Duc Ung, a senior policy expert from the MPI, said donors have gradually reduced their subjective policies towards aid recipients as illustrated in the Hanoi commitment, in which donors pledged that their assistance will depend on the country's development strategies as well as aid reception steps and management rules in its ODA policies.

 

In order to bring the multilaterally and bilaterally commitment into reality, it is essential for Vietnam to raise people from all-grass root levels about contents and effectiveness of ODA.

 

In related news, the MPI is seeking the Government’s approval for a draft decree on decentralization of ODA capital. Accordingly, local authorities will bear full responsibility for the management and use of ODA capital during the project lifespan assigned. Meanwhile, the MPI will only ratify key national ODA-funded projects but still list ODA investment portfolios to call for funding.

 

ODA commitments to Vietnam reached $32 billion from 1993. At present, around 50 international donors have been committed to Vietnam's projects with a view to help the country meet the country’s goals for socio-economic development, especially poverty reduction.