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ODA commitment forecast to increase slightly

In Uncategorized on December 4, 2008 at 2:21 pm

– The Ministry of Planning and Investment (MPI) has forecast ODA commitment to Vietnam is likely to increase slightly in the next two years despite great changes in the world economy.

It expects total ODA fundings to be signed during 2009 and 2010 will reach 6 billion USD.

In its report at the Consultative Group Meeting (CG) that convened in Hanoi on Dec. 4, the MPI said the increasing ODA commitment to Vietnam from years to years, even when the world tends to cut down the funding, has proved the international community’s approval of Vietnam’s policies and guidelines.

Total ODA commitment to Vietnam for the 2006-2008 period has surpassed 13.6 billion USD with a record high of 5.43 billion USD in 2007.

Of the figure, 10 billion USD has been officially allocated to signed programmes and projects with 9.4 billion USD in the form of loans, while the rest are non-refundable aid.

ODA structure has also shifted to come closer to Vietnam ’s needs, with priority given to agriculture and rural development in combination with hunger alleviation and the development of energy, industry, transportation, communications, urban water supply, health and education.

Thanks to this source of funding, Vietnam has been able to improve and develop its socio-economic infrastructure, contributing to creating a favourable environment for foreign investment attraction, boosting poverty eradication and improving the living condition for the people.

Through technical support, ODA-funded projects have also helped Vietnam build legal institutions, access modern technology and management experience and develop human resources.

Noteworthy ODA-funded projects include the 1 billion USD Noi Bai-Lao Cai highway, the 360 million USD expanded power transmission system for the northern region and the southern coastal beltway which worth 382 billion USD.

The Mekong Delta region has received 207 million USD in ODA capital to develop its transport infrastructure and water environment in central Hue city is being improved with ODA funding worth 182 million USD.

Despite the high commitment, Vietnam ’s ODA capital disbursement rate is still lower than the regional level. The disbursement rate of ODA funded by the WB stands at 11.6 percent, compared to the region’s 19.4 percent and by the former Japan Bank of International Cooperation (JBIC), 13.6 percent, compared to 16.6 percent of the region.

In the next two years, Vietnam aims to disburse 2.8 billion USD each year to fulfill its plan of 12 billion USD of ODA disbursement in the 2006-2010 period.-

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