The European Union yesterday, June 2, praised Viet Nam’s aid
effectiveness, saying that future development assistance might well take
different forms.

“Viet
Nam’s done exceptionally well in terms of its aid effectiveness, therefore it
gets one of the biggest aid amounts in the world,” said the head of the EU
Delegation to Viet Nam Sean Doyle at the launch of the 13th annual bilateral
development co-operation report (EU Blue Book) one week ahead of the Mid-year
Consultative Group Meeting.

The
country is set to share its experience and insights at the upcoming High Level
Forum on Aid Effectiveness in Busan, South Korea in November.

Despite
criticism regarding Viet Nam’s slow disbursement of official development
assistance (ODA) during this year (only US$400 million out of a committed $7.9
billion during the first four months of 2011), Doyle said that the country’s
performance “is still very good” seeing as large projects needed several years
to bear fruit.

“In
practice there will always be differences between commitments and payment,” he
said.

“Viet
Nam is normally good at payments, a little bit slow, but not as slow as most of
the countries we’re working with. Some projects, such as those involving trade,
are very good,” he added.

Some
delays could be explained by the Vietnamese Government’s current efforts to
reprioritise their own projects, which, according to Doyle, “is necessary from
time to time”.

The EU
delegation head said that this was an important year for the bilateral
co-operation.

“The
year of 2011 is particularly important for co-operation between Viet Nam and EU
member states since the Government plans to approve its 5-year Socio-economic
Development Plan and Viet Nam has become a middle-income country,” said Doyle.

Regarding co-operation planning, EU assistance will be especially focused on
poverty reduction in Viet Nam.

“We
support and we praise the great economic success of Viet Nam, but at the same
time we very much want that this growth be shared between the rich and the
poor,” said Doyle.

The EU
remained fully committed to international efforts to eradicate poverty through
development assistance and increased aid effectiveness this year, he said.

“The EU
expects that Viet Nam’s ODA strategic framework will identify the strategic
orientations and guidelines that ensure best value for money in terms of
development assistance during the 2011-2015 period,” he said.

The EU
delegation head said that development assistance commitment was unlikely to be
reduced in times to come due to the country’s middle-income status and the EU
member states’ credit crunch, but that it might take on different forms.

It is a
view shared by head of the Co-operation Section at the Belgian Embassy, Luc De
Backer.

“Although there will be no change in aid flow, aid composition might alter. I
think we have to see what the new needs of Viet Nam as a middle income country
are in order to help it overcome new challenges,” he said.

Head of
the Development Section at the Irish Embassy in Viet Nam, Garvan McCann, added
that Ireland wished to continue its partnership with Viet Nam in tackling
poverty and supporting non-governmental organisations.

It also
committed its assistance to the five-year socio-development plan.

“It’s
important that Viet Nam welcomes dynamic intellectual exchange,” he said.

Doyle
added that there would be “more partnerships” and “less traditional aid.”

“I think
we will be working in increased partnership because many problems, including
migration and climate change, concern not only Viet Nam, but Europe as well,” he
said.

He said
that there would probably be more loans and less grants to Viet Nam in times to
come.

The EU
committed nearly US$1 billion in 2011 development assistance for Viet Nam.

More
than 40 per cent of the $972 million was made up by grants the Government would
not have to pay back.

This
year’s indicative assistance is of around the same amount as last year.

The EU
commitment makes up 11 per cent of donor commitment to Viet Nam this year,
following the World Bank with 33 per cent, Japan with 22 per cent and the Asian
Development Bank with 19 per cent.

Among EU
member states, France committed the most with $221 million, followed by Germany
($199 million).

VietNamNet/Viet
Nam News