LookAtVietnam – Many Vietnamese families who climbed out of poverty over the past several years are under threat of slipping below the line again because of the global economic crisis, Deputy Prime Minister Pham Gia Khiem said yesterday, June 8.

International donors discussing poverty in Viet Nam under the effect of global economic crisis at the mid-term Consultative (CG) Meeting 2009 in Buon Ma Thuot.

The crisis has already had serious negative effects on many remote areas in the country, including the Central Highlands, said Khiem.

Since 1993, Viet Nam has received official development assistance (ODA) from 50 donors who have pledged total ODA loans of US$50 billion.

The deputy prime minister said these loans and donors’ experience has helped Viet Nam develop its infrastructure and attain significant achievements in socio-economic development.

The rate of poor households measured by international norms fell from 58 per cent in 1993 to 12.5 per cent last year, he said.

“Viet Nam has attained positive results in poverty alleviation among residents of remote mountainous areas, including the Central Highlands,” said Khiem.

He said this was part of the reason why the current meeting was being held in the Central Highlands.

Government response

Viet Nam attained a GDP growth rate of 6.2 per cent in 2008, an important year in the five-year (2006-10) socio-economic development plan period.

In 2009, like other countries, Viet Nam was seriously affected by the global financial and economic crisis, and is facing great difficulties and challenges.

“The Vietnamese Government has taken strong measures to cope with the impacts, including implementing a stimulus package of over $8 billion.

Khiem said in the first quarter of this year, Viet Nam attained a GDP growth rate of 3.1 per cent, ensured people’s welfare and maintained social and political stability.

For the rest of the year, the Government would concentrate its efforts on preventing economic downturn, stabilising the macro-economy, preventing inflation, and ensuring national security and defence, he said.

Viet Nam is expected to attain a GDP growth rate of 5 per cent this year and higher growth in following years.

As a member of the World Trade Organisation, Viet Nam has established commercial links with 220 countries and territories, with trade turnover exceeding $140 billion in 2008, an annual increase of nearly 20 per cent over the past two decades.

Viet Nam has also licensed over 10,000 foreign direct investment projects from 80 countries and territories, with total pledges of over $160 billion.

Khiem said the Vietnamese Government has taken measures to create favourable conditions for sustainable development in the coming years.

“We believe that Viet Nam will remain a dynamic economy, a truthful partner for international donors and a competitive destination for investors from all over the world,” said Khiem.

Unique opportunity

In addition to poverty, social and labour market issues, participants discussed recent socio-economic developments and forecasts; reports from the recently held Viet Nam Business Forum; anti-corruption strategies; and climate change, said Planning and Investment Minister Vo Hong Phuc.

Participants discussed how the successes achieved so far in handling the crisis can be consolidated.

The World Bank director for Viet Nam, Victoria Kwakwa, said the crisis presents a unique opportunity because it has high-lighted where some of the weakest links in the country’s socio-economic development lie.

The meeting discussed ways to accelerate work on the nation’s social security system while responding to the immediate needs of those who have been impacted by the crisis.

They also discussed how the work to monitor of social impacts of the crisis can be strengthened and how poverty challenges specific to the Central Highlands can be best addressed.

“The Government’s policy responses so far have succeeded in reducing adverse impacts and preventing the economy from falling into deep recession as has been experienced elsewhere in the region and globe,” said Kwakwa.

“Donors recognise the Government’s strong development focus and Viet Nam’s remarkable progress. This progress must not stall, it must continue,” she said.

She said the World Bank is ready to work with the Vietnamese Government on remaining and emerging challenges and contribute to moving the country to a higher level of socio-economic development.

VietNamNet/Viet Nam News