Japan and the UK are the two first countries to pledge assistance to Vietnam in 2010 at the Consultative Group (CG) Meeting.

PM Nguyen Tan Dung and the two co-chair people, the Minister of Planning and Investment Vo Hong Phuc and the WB’s Director in Vietnam Victoria Kwakwa.

The CM Meeting opened in Hanoi on December 3. Speaking at the meeting, PM Nguyen Tan Dung confirmed that official development assistance (ODA) takes a significant role to Vietnam’s development.

“Since 1993 international donors have stood side by side with Vietnam even when they faced difficulties,” Dung said.

Japanese Ambassador to Vietnam Sakaba Mitsuo said that in the fiscal year, which will end in March 2010, Japan committed $1.6 billion of ODA for Vietnam. It also provided urgent aid of $626 million for Vietnam’s economic recovery.

Mark Kent, the UK Ambassador to Vietnam, said that his country’s committed ODA for Vietnam in 2010 will be $83.4 million. According to a bilateral agreement in 2006, from 2006-2011, the UK will supply non-refundable aid of GBP50 million to Vietnam annually, mainly for hunger eradication and poverty reduction.

The country director of the Asian Development Bank in Vietnam, Ayumi Koinishi said that the Vietnamese economy has made profound changes after the economic crisis. The measures that were effective in the past may be ineffective in the new situation.

“Though there are many challenges, we are very optimistic about the future of Vietnam,” Koinishi said.

This year the ADB provided $2 billion of ODA for Vietnam. The bank and other organizations like the World Bank (WB) and the European Union (EU) will announce ODA commitments for Vietnam on December 4.

The CG meeting 2009 takes place between December 3-4, with the participation of PM Nguyen Tan Dung, representatives from 34 countries and ten international development organizations. The co-chair people of the meeting are the minister of planning and investment Vo Hong Phuc and the WB’s director in Vietnam Victoria Kwakwa.

Major topics at the CG Meeting 2009:

1. What are the impacts of the economic crisis to hunger and poverty in Vietnam and how can Vietnam resume its previous achievements in hunger eradication and poverty reduction?

According to PM Nguyen Tan Dung, the poverty reduction process slowed down this year. If the percentage of poor families reduced by 2 percent a year in previous years, it is only 1 percent in 2009, bringing the percentage of poor households from 12 to 11 percent.

2. What will come after the economic stimulus package? In 2009, the estimated growth rate of 5.2 percent for Vietnam is considered satisfactory in comparison to other economies, the International Monetary Fund’s representative said. However, after the Vietnamese government stops the stimulus package, will Vietnam archive high growth rate as it once did?

3. What challenges face Vietnam in its progress to become a country with medium per capita income in the world?

4. How does Vietnam cope with climate change? Vietnam is among the countries which will suffer most when sea levels rise.

PV