~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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[Year 2001]

Donors pledge 2.4 billion to help Vietnam reforms weather downturn

International donors have pledged 2.4 billion dollars in assistance for Vietnam as they moved to help the communist authorities maintain the momentum of market reforms in the face of a worsening global economic downturn. Even more money would be made available if the falloff in consumer demand in the major economies accelerated, further eroding Vietnam's export earnings, donor representatives promised at an annual aid review meeting here.

In a final statement, donors "commended" the communist authorities for the "progress" made over the past year in adopting a "broad programme of macroeconomic and structural reforms" and expressed their readiness to provide the financial support necessary for implementation. In dollar terms, the amount pledged was exactly the same as last year. But donor representatives stressed that the current strength of the greenback concealed substantial increases from several key countries, as donors moved to support what they regarded as a significant quickening of the pace of reform.

"In real terms measured by a weighted average of currencies it is an increase from last year," said World Bank country representative Andrew Steer, who chaired the meeting. Japan, which accounts for some 40 percent of all overseas assistance here, actually increased its pledge by some eight percent, despite a 10 percent cut in its overall aid budget forced by fiscal woes at home. The increase, which makes Vietnam the second largest recipient of Japanese aid, was a sign of Tokyo's "strong commitment" to the communist state, Planning and Investment Minister Tran Xuan Gia said.

Donors were eager to help the communist authorities implement the tough programme of structural reforms which they had undertaken in the face of the hostile economic climate, said Steer. Steer stressed that the worsening recession which had followed the September 11 attacks in the United States had given Vietnam "opportunities" as well as challenges. It remained the second fastest growing economy in the region, beaten only by ideological soulmate China. And its reputation for security gave it the opportunity to promote itself as a safe investment destination amid the increased fear of terrorist attack.

There were already signs that foreign investment was picking up and it was hoped that during 2002 it would overtake overseas development assistance as a source of capital inflows for the first time since the Asian financial crisis of 1997. Despite repeated calls from watchdogs for donors to demand improvements in Vietnam's human rights record, Gia said the communist authorities had promised no action in return for the huge aid pledge. According to Gia, the donor review had instead focused on the most important right of all, the right to life and material well-being.

New York-based Human Rights Watch had called on donors to "press for significant progress" and the release of dozens of religious leaders and political dissidents who remain in detention "in violation of their human rights".

Agence France Presse - December 8, 2001.