International donors have pledged nearly 7.4 billion USD in official development assistance to Vietnam next year. The move proves the international community’s trust in Vietnam ’s economy despite the current global crisis. But the issue for Vietnam is how to use the ODA effectively and outline more flexible mechanisms to quickly disburse the funding to help stabilize the macro-economy towards a sustainable growth.

The 7.4 billion USD committed at the recent Consultative Group Meeting in Hanoi will help Vietnam at a time when the country faces serious challenges. The Ministry of Planning and Investment says it will continue to focus on Vietnam ’s core development needs - infrastructure, health care, education, the training of highly qualified human resources, climate change response, poverty reduction and social security. Ngo Thinh Duc, Deputy Minister of Transport says ‘Vietnam’s transportation network is inadequate. Although we have increased investment in road systems, the development of seaports in economic centers and gateway cities like Hai Phong, HCM City and Da Nang still worries foreign investors. Rail roads linking larger logistic systems also remain a problem’.

Hoang Van Thang, Deputy Minister of Agriculture and Rural Development highlighted international support to rural agriculture. He notes ‘We are seeking to secure financing for rural and agriculture expansion. For example, we can either call for donors’ investment and encourage enterprises to invest in remote areas or provide small loans to local people so they can improve their own fortunes’.

Deputy Minister of Planning and Investment Cao Viet Sinh says Vietnam will need 260 billion USD to implement its development strategy for the next five years. Sinh furthers ‘We will never be successful in implementing what we have planned for the next five  to ten years without foreign resources. We should appeal to international donors and the World Bank to provide about 35 billion USD and try to disburse two thirds of the amount in the next five years. Vietnam is designing a project to attract, use and manage ODA capital effectively based on achievements since 2006’.

Over the past five years, Vietnam has been credited with using ODA effectively, but it should improve management further and speed up disbursement. Tsuno Motonori, chief representative of the Japan International Cooperation Agency says that Japan’s ODA to Vietnam next year will be 1.9 billion USD or more.