Donors pledge $3.7 Billion in aid to Vietnam for 2006
HANOI - International donors on Wednesday pledged US$3.7 billion in development aid to Vietnam for 2006 as it seeks to maintain its high economic growth.
The amount, an increase over last year's pledges of US$3.4 billion, followed a call by Deputy Prime Minister Vu Khoan a day earlier for more aid and investment from donors to help Vietnam keep its growth rate between 7.5 and 8 percent over the next five years.
"This is a record figure...It shows the consensus and support of the donors to Vietnam's socioeconomic development for the next five years," said Minister of Planning and Investment Vo Hong Phuc at a press conference following the meeting.
Japan remained the single largest donor nation with pledges of US$835.6 million, though the European Union as a bloc pledged more -- US$936.2 million. Multilateral organizations including the World Bank committed US$1.36 billion.
The new pledges constitute a vote of confidence in the country's economic growth and its success in cutting the poverty rate, donors said.
This year, Vietnam has forecast a record economic growth rate of 8.4 percent, the highest in a decade. Within Asia, the country is second only to China. Vietnam has targeted growth rates between 7.5 to 8 percent over the next five years.
At the same time, international donors also urged Vietnam to accelerate reforms already underway.
"Many things need to be reformed simultaneously," including financial sector reform, public administration reform and legal and judicial reform, said World Bank Country Director Klaus Rohland.
Donors at the annual meeting in Hanoi to review the use of foreign aid also discussed ways to help Vietnam deal with challenges as the country prepares to start its new five-year development plan and work towards accession to the World Trade Organization.
For the first time, Vietnam sought outside input on developing its five-year plan through 2010, typically a closed-door process by the government. The inclusion of other voices and the frankness of discussions were a positive sign, donors said.
"It's an indication of much more openness, which encourages donors' commitment," said UN Resident Representative Jordan Ryan.
The Associated Press - December 7, 2005.
|