Barriers for Japan’s ODA pledge to be solved

VietNamNet Bridge – At the closing session of the Consultative Group Meeting 2008 (CG) on December 5, Minister of Planning and Investment hoped that the Vietnamese and Japanese governments would closely combine to deal with the hindrances for Japan’s ODA pledges to Vietnam.

The CG Meeting 2008.

Pledged ODA for Vietnam falls 8%

Japanese Ambassador: more evidence in PCI case being uncovered

PCI obstructing ODA for Vietnam is momentary

Japanese ODA for Vietnam on hold

Vietnam honours every penny of ODA: PM

Difficulties of ODA negotiators

Effective use of ODA committed

The CG Meeting closed with a total amount of committed official development assistance (ODA) for Vietnam of US$5.014 billion, not including the ODA commitment of Japan, the largest donor for Vietnam in previous years. The Japanese Ambassador to Vietnam said Japan suspended the ODA grant to Vietnam to wait for the investigation result of the PCI corruption case.

Speaking at the closing ceremony, Minister Vo Hong Phuc highly appreciated the international donors’ assistance to Vietnam and said that the US $5 billion ODA pledges for Vietnam in the current difficult situation of the world economy is showing donors’ efforts and their agreement with Vietnam’s development and renovation policy.

“I regret that Japan hasn’t made ODA pledge to Vietnam yet, otherwise the figure would have exceeded US $6 billion. I would like to thank Japan for still considering Vietnam as its leading assistance partner and being interested in big projects in Vietnam, particularly the express railway, the highway, and the Hoa Lac Hi-tech park projects. I hope that the two governments will closely combine to deal with hindrances for Japan’s ODA pledge,” Phuc said.

Phuc hopes to meet the Japanese Ambassador to Vietnam again to sign the diplomatic note on Japan’s aid for Vietnam in early 2009.

The Minister re-affirmed the Vietnamese government’s policy on effectively using the ODA for the development of Vietnam.

US $11 billion disbursed in 5 years

Minister Vo Hong Phuc and Vice President of World Bank James Adam at the press conference.

Phuc affirmed that Vietnam would share economic information with donors, pursue the campaign on hunger eradication and poverty alleviation, support the development of ethnic minority groups, strengthen the operations of state-owned enterprises, ensure the stability of the system of small and medium-sized enterprises, all while continuing to implement its commitments to the World Trade Organization (WTO).

The Minister also emphasized the government’s efforts and resolution in combating corruption and the role of the media in preventing corruption.

In the press conference after the CG 2008, Phuc said that the three big Japanese-funded projects that were suspended because of the PCI corruption case are valued at around JPY 65 billion, namely the second phase of the Hanoi water drainage project, the urban environment and hygiene project in Hai Phong, and the metro project in Hanoi.

Phuc said Vietnam fulfilled its disbursement plans for the years of 2006, 2007 and 2008, totaling over US $6 billion. The country plans to reach disbursement of US $11 billion in five years.

“The ODA disbursement is among the priority programs of the government,” Phuc stressed.

The Australian Ambassador to Vietnam Allaster Cox: Vietnam continues to be a bright point in the world in effectively using ODA. However, it is very important for Vietnam to make practical changes in implementing aid programs at the ministry and local levels. The Swedish Ambassador to Vietnam Rolf Bergman: the Vietnamese government and development partners agreed that combating corruption is an uncompromising war. Vietnam needs to step up their follow-up action programs to achieve this goal. The government also needs to encourage the media to participate in fighting corruption. The UNDP coordinator in Vietnam John Hendra: It is very important to preserve Vietnam’s economic progress, but it is more important to tackle adverse impacts of the current situation to the poor. This is very necessary to ensure that families that have just escaped from poverty to not become poor again. The representative of the International Monetary Fund Shogo Ishii: The government also needs to be cautious in setting the goals for 2009, especially the goals for growth and investment. It is also important for designing appropriate economic policies, which takes into account to outside risks that Vietnam may face, protecting institutions, improving data quality and communications, and promoting structural reforms.

Xuan Linh