Donors to review Vietnam economic policies in June
HANOI, - International donors will hold an informal review of Vietnam's economic reform policies next month, a World Bank official said on Tuesday.
The mid-year review -- the first to be held for Vietnam by donors under the World Bank Consultative Group -- comes as concern grows among foreign investors and businessmen over the slow pace of economic reform in the country.
Kazi Matin, chief economist of the World Bank in Vietnam, said the informal meeting would take place in the central city of Hue on June 15.
Donors pledged $2.4 billion to Vietnam last December, around the same as 1996.
``This sort of review is the first for Vietnam but both donors and the government are interested to get a sense of how things are going to work out over the year in terms of economic policy and donor support,'' Matin told Reuters.
``The government is interested in getting some sense of where donors stand as they move toward their next Consultative Group meeting in December.''
``I think donors felt it would be useful to talk informally about the economic situation and measures necessary to address this,'' Matin added.
Matin said donors would also meet foreign businessmen on June 14 in Hue to discuss various foreign investment projects in the country.
Vietnam adopted major economic reforms in 1986 and has recorded impressive growth since then. However, the country remains one of the poorest in the world with average annual incomes of just over $300.
In addition, Vietnam has begun to feel the fall-out from Asia's financial crisis in the form of falling foreign investment from its neighbours and sluggish growth in some key regional export markets.
Foreign economists have urged Vietnam to announce fresh reform measures to stem
growing frustration over the difficulty of doing business in the communist country.
Some donors have also expressed concern over the slow pace of aid disbursements, especially as these funds are an important source of foreign exchange for Vietnam.
By Dean Yates - REUTERS, May 19, 1998.
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