Gov’t. aims for effective ODA management and use in period 2006-2010

The scheme aims to attract about US$11 billion of ODA as outsourced capital in the five years from 2006-2010.

The policy in this period is to raise ODA and improve its management and use while ensuring its solvency for the five-year 2006-2010 socio-economic development plan. In the time to come, it is crucial to speed up the disbursement of ODA for approved programs and projects so that they can be put into practice soon to show the efficient use of ODA. At the same time, it is also necessary to design the following ODA projects and programs for the post-2010 period with a focus on quality and efficiency.

Areas prioritized for ODA include agricultural and rural development (agriculture, irrigation, forestry, and fishery) combined with poverty alleviation; building modern economic infrastructure and social infrastructure (healthcare, education and training, population and development, and others); protection of environment and natural resources; strengthening institutional capacity and human resources development, technological transfer, and increasing research and development capacity.

It is estimated that ODA commitments for Vietnam during the 2006-2010 period will reach US$ 19-21 billion (averaging US$ 4 billion a year), increasing by 8% against 2005’s level. The total committed ODA is expected to come to US$ 20.4-23.8 billion and disbursement, US$ 11.5-12.4 billion.

The scheme also outlines a structure for ODA attraction and use by sector, activity and region in the period of 2006-2010. Accordingly, as much as 21% of the ODA will go to supporting agriculture, irrigation, forestry, fishery and poverty alleviation; 15% to electric grids and relay stations; 33% to transport, post and telecommunication, water supply and drainage, and urban infrastructure; and 31% to healthcare, education and training, environment, science and technology and other sectors.

In the coming period, the Government will work with the donors to increase the ODA share for assisted areas such as the northern midlands and highlands, the northern and coastal parts of Central Vietnam, the Central Highlands and the Mekong Delta.

To put the scheme in place, the Government will take a host of measure packages pertaining to policy and institution; organization; ODA attraction and use; openness and transparency; information and communication; and partnership with the donors.

By Hoàng Nguyên

(Source: Decision 290/2006/QĐ-TTg)