(VOVworld) – Starting next year, the Vietnam Development Partnership Forum will replace the Consultative Group Meeting and will be jointly chaired by the World Bank and the Ministry of Planning and Investment. The new forum is based on Vietnam’s needs as a middle income country with a stable market economy and a stronger partnership between Vietnam and the international community. VOV’s Vinh Phong reports:

Minister of Planning and Investment Bui Quang Vinh at the meeting (Source: VNA)

Victoria Kwakwa, Director of the World Bank Vietnam, says the meeting’s renaming and change of content is necessary and that Vietnam’s government and foreign donors spent a lot of time deciding how the CG Meeting should adapt to the new period and changes in the donor nations. Ms. Kwakwa said ‘This annual CG is the last in the current format which was designed about 20 years ago to serve primarily as an ODA resource mobilization platform. Today there are more partners in Vietnam’s development—civil society both international and local, as well as private sector. We hope that the new format going forward will embrace this wider group, allowing the collective wisdom of all stakeholders to be effectively tapped. Finally we would like the CG to become more action oriented and come up with concrete areas of follow up. I am confident that we are embarking on an exciting new phase of our dialogue and partnership as we move to a new format for the CG in 2013 and beyond. Excellency PM Dung we thank you for your support of this evolution, and look forward to your continued active engagement in the years ahead. Prime Minister, as development partners, we appreciate the opportunity to discuss with your Government Vietnam’s key development issues.  On behalf of all of us, I would like to reassure you that we approach this with a strong sense of responsibility and sincerity and hope that it does add value for you and the Government at this critical juncture in the country’s history. We should discuss openly, honestly and constructively, drawing on the trust and the goodwill that underpins our partnership. I urge all of us to keep our interventions focused and succinct and allow the opportunity for real dialogue by giving each other a chance to be heard and by actively listening to others. I look forward to very fruitful CG.’

Since 1993, when Vietnam resumed relations with foreign donors, the CG Meeting has become an effective forum for developed countries to share their experience with the Vietnamese government. Over the past 20 years, Vietnam has made remarkable progress, turning into a lower middle income country from a poor nation with a 58% poverty rate in 1993. This has been largely due to donors’ contributions in both money and development experience shared through policy dialogues. In the new development period, Vietnam will continue to cope with economic challenges and the mission to fulfill its millennium development goals including poverty reduction, social welfare and growth model reform. Motonori Tsuno, Chief Representative of the Japan International Cooperation Agency, JICA in Vietnam, said that in the 2013 fiscal year, Japan wants to be Vietnam’s biggest ODA donor on top of advising Vietnam on its economic and social development. Motonori Tsuno said ‘Vietnam has become a lower middle income country and foreign donors have set new aid strategies. This year’s CG Meeting attracted not just donors but other enterprises which want to be involved in Vietnam’s growth. In the future, it will be necessary to create a close link between donors and enterprises to jointly support Vietnam’s socio-economic development.’

According to Bui Quang Vinh, Minister of Planning and Investment, promoting dialogues between governments and donors have become more important than ever. But adjustments are needed to make the CG Meetings more effective. In the past years the CG Meeting has been held biannually but starting next year, it will be an annual year-end event. By the end of the meeting, task forces will be set up to implement activities and policies approved at the meeting. Minister Vinh said ‘Changing the content and form of the CG Meeting is not due to Vietnam becoming a lower middle income country. Vietnam will lose some sources of preferential loans for poor and underdeveloped countries. But the amount of commercial loans for Vietnam will increase. Donors will continue to give policy advices to Vietnam.’

The 2013 Vietnam Development Partnership Forum is scheduled to last one or two days depending on the agenda. It will include a session to discuss technical issues and propose items to be addressed at the official meeting. The highlights of the official session will be recommendations and donor pledges.

Vinh Phong