The financial commitment to Vietnam s development reached record levels, with pledges reaching more than US$ 4.45 billion in assistance for the coming year, compared to US$ 3.7 billion last year.
Under the topic "Socio-economic development 2006-2010", the Consultative Group (CG) Meeting this year attracted great interests of donor countries. In particular, the direct dialogue with Prime Minister Nguyen Tan Dung has reaffirmed the important role of donors to the development of Vietnam .
According to the Prime Minister, in 2006, the economic growth rate of Vietnam is 8.1-8.2 per cent, higher than the average set for 2006-2010 of 7.5-8 per cent. Successes have been recorded in the poverty reduction and millennium development objectives. Poor households reduced from 22 per cent in 2005 to 19 per cent in 2006. Transparency and accountability have been improved in the administrative reform.
Anti-corruption has been carried out with high determination focusing on big cases to increase the confidence of the people and business community in the State policy.
Minister of Planning and Investment Vo Hong Phuc announced that the 2006-2010 socio-economic development plan has been endorsed by the National Assembly. By 2010, Vietnam will get rid of less-development status with GDP per capita of US$1,050-1,100, and continue high economic growth rate of 7.5-8 per cent a year or even over 8 per cent. Implementing the National Assembly Resolution, the Government has issued Action Plan with 18 solution groups and 217 specific works and related authorities at all levels are carrying out their tasks.
For the purpose, in 2006-2010, Vietnam needs some US$140 billion from local and foreign resources, in which ODA continues to play an important role with reimbursement of some US$11 billion. Also according to Mr Phuc, Vietnam is improving the legal framework to manage effectively ODA. In 2006, series of instruments have been amended including Decree 131/ND-CP on management and usage of ODA with more transparency, accountability, responsibility and cohesion so as to improve the reimbursement and project quality. ODA resources will be mainly for development of large-scale infrastructure of high priorities such as North-South roads and railways, two corridors and a ring, communication axis in Central Vietnam, upgrading roads in Hanoi and Ho Chi Minh City .
Donors and Government agreed that the steps taken to reform and open up the economy will benefit the Vietnamese people through the creation of employment, increasing exports and enhanced ability to attract foreign investment. While commending the strong economic progress in the last few years, as well as the prudent macroeconomic management, delegates emphasized the need to accelerate reforms, particularly of State Owned Enterprises (SOEs) and address shortcomings in the financial sector. Donor emphasized that in the future, the Government should move rapidly from being an owner to becoming a regulator of business.
Delegates emphasized that strengthening the capacity of government employees and institutions is a critical challenge. They noted that a middle-income country has a more complex economy, much more diverse across regions and across sectors, and Vietnam must tackle this to put itself on track to become an industrialized country.
Donors noted that development is about more than just economic growth, underscoring that emphasis must also be placed on quality of growth, social inclusion and on the changing nature of the relationship between the state and society. They emphasized the importance of establishing an enabling legal framework, including an appropriate Law on Association, for civil society participation in Vietnam s development process.
According to Minister Phuc, the Vietnamese government is fully committed to the efficient use of ODA. It continues to accelerate the reform of State-owned enterprises, upgrade commercial banks, step up administrative reform and anti-corruption measures.
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