Vietnam asks donors for continued assistance

Vietnam is seeking continuous assistance from donors so it can successfully implement its socio-economic development strategy during the 2011-2020 period, a senior Vietnamese official has said.

When addressing the Consultative Group meeting in Hanoi on December 7, Minister of Planning and Investment Vo Hong Phuc said that Vietnam will perfect its socialist-driven market economic institutions, develop its human resources and build a comprehensively-developed infrastructure over the next ten years.

He highlighted the international community’s contributions to Vietnam ’s development in the past, which have, along with efforts by the Government and people, helped Vietnam to prevent economic decline and achieve a GDP growth rate of 6.7 percent in 2010.

In the 2006-2010, Vietnam posted an annual GDP growth rate of 7 percent on average and obtained a per capita income of 1,160 USD a year. Plus it has achieved almost all of its millennial development goals.

The Country Director of the World Bank, Victoria Kwakwa, applauded Vietnam ’s achievements, especially its successful transition from a low-income country to a middle-income country.

She underlined that Vietnam ’s proactive preparations for its 2011-2010 development strategy are an important step which will enable it to avoid a middle-income country’s problems and pursue a modern economic model.

To sustain a robust and sustainable growth rate, Vietnam needs a new method of approach instead of retaining its current development strategy, which is based largely on the country’s natural resources, said the WB official.

According to Kwakwa, Vietnam needs to develop its human resources, create a more balanced environment for State and private enterprises to operate in as well as local and foreign businesses, encourage environmentally friendly developments and adopt a policy on social development to narrow the differences between urban and rural areas and the gender gap.

The two-day meeting focuses on stabilising the macro-economy and promoting sustainable growth, in addition to public governance, transparency and the effectiveness of the State economy. They will also discuss the fight against corruption, and future relations between Vietnam and its development partners when it becomes a middle-income country.

At the meeting, the donors are expected to announce their ODA commitments to Vietnam for 2011.

In 2009, they pledged over 8 billion USD, which is the highest amount of ODA Vietnam has obtained to date./.

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Access to microfinance helps poor groups

A workshop was held in the northern midland province of Phu Tho on September 16 to implement a microfinance support programme, helping promote better access to sustainable, affordable and diversified financial services by low-income groups in Vietnam.

The project, funded by Cordiad from the Netherlands with technical assistance from the International Labour Orgainisation (ILO), will build institutional and operational capacity of microfinance stakeholders through the establishment of a network of qualified training providers, and the strengthening of the representation roles of the microfinance working group.

It will also improve access to savings products for low-income groups and promote microinsurance initiatives for the low-income population.

The project emphasises linking training institutions with resource trainers/practitioners in the area of microfinance, exploring innovative channels for distributing savings and insurance products to a greater number of poor in rural and remote areas, and enhancing the financial capabilities of low-income groups to enable them to make informed choices on money matters.

Deputy Minister of Labour, Invalids and Social Affairs Nguyen Trong Dam spoke highly of the project in helping the ministry to make policies relating to poverty reduction and risk mitigation.

“Through the project, we do hope that concerned line ministries and agencies will recognise the importance and ways for effective cooperation between policy makers, microfinance service providers and social organisations for the best interest of Vietnamese people, especially low-income groups,” he said.

Rie Vejs-Kjeldgaard, ILO country director, said the project continues to demonstrate the strong commitment of the ILO in assisting the government of Vietnam in developing effective social protection policies under the framework of Decent Work for All.

Microfinance has developed gradually during the past 20 years, reaching over six million low-income people in all provinces of the country.

However, the microfinance sector in Vietnam has not fully realised its potential for fostering economic and social development in comparison with other regional countries, since there is no leading training institution in the sector./.

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