(VEN) - The 2011 Consultative Group Meeting for Vietnam (CG 2011) saw pledged Official Development Assistance (ODA) of US$7,386 million for Vietnam for the 2012 fiscal year, compared with US$7,905 million in 2011 and US$8,063 million in 2010. Despite the slight drop, experts said that ODA for Vietnam in 2012 was fairly high given that global economic problems remain and that many ODA providers are facing difficulties.
With US$2,097 million, the World Bank (WB) became Vietnam's largest ODA provider in 2012, followed by Japan with US$1.9 billion, and the Asian Development Bank (ADB). At the 2011 CG meeting the Japanese representative affirmed that Japan was very confident of the pace of ODA disbursement in Vietnam and that it would continue to support Vietnam and to consider the country a strategic partner in the future.
Minister of Planning and Investment Bui Quang Vinh said that although ODA for Vietnam in 2012 was less than in 2011, it was still fairly high for three reasons.
First, the US$7.9 billion ODA for Vietnam in 2011 included a WB bailout package. However, this source of capital would not come in 2012. Second, Vietnam has become an average-income country and for this reason ODA for Vietnam would drop. Third, many European countries are struggling with the public debt crisis and serious budget deficit. Several large ODA providers such as Japan and the US are facing difficulties due to the crisis related to earthquake, tsunami and economic downturn.
Bui Quang Vinh also said that ODA was very important for Vietnam given that the Vietnamese Government is trying to slash public investment and that ODA would save several large projects. On account of this, Vietnam has committed to effectively use ODA capital to meet donors' expectations.
Vietnam would accelerate the pace of ODA disbursement in 2012. It is expected that US$3.65 billion would be disbursed in 2011 and that the figure for 2012 would not fall. In doing so, Vietnam would keep up with the need for socioeconomic development and meet donors' expectations. Vietnam would also consider 2012 to be the year of ODA disbursement. Deputy Minister of Planning and Investment Cao Viet Sinh said that several sectors would be given priorities in using ODA capital. These would include strengthening institutions, training high-quality workforce, and building complete infrastructure and high-cost projects to meet the need for social development. In addition, Vietnam would continue prioritizing ODA for hunger eradication, poverty reduction and social security, which have caught the attention of donors./.
By Nguyen Hoa
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