ASEAN KEY DESTINATIONS
VN's partners pledge US$7.9 billion
The money was promised at the two-day yearly Consultative Group meeting that ended in Ha Noi yesterday and will be used to help Viet Nam stabilise its macro-economy and focus on priorities for sustainable development.
Multilateral donors would provide $3.3 billion and bilateral donors the remainder, said Planning and Investment Minister Vo Hong Phuc ending the meeting.
Most of the money would be used for infrastructure, especially transport and the response to climate change.
The figure was very impressive because Viet Nam was now designated a middle income country, he said.
This status would create challenges in raising capital for development as Vietnam would receive fewer concessional loans - and then for shorter terms - and higher interest rates. The result was that ODA would be used for economic development projects with a high return on investment.
Although pledged assistance totaled $8 billion at last year's meeting, it included a $1-billion-package to help Viet Nam overcome the severe impact of the financial crisis and economic contraction.
"Viet Nam would continue to borrow ODA capital as it has brought great benefits," Minister Phuc said. The minister emphasized that donor commitments had reached $64 billion with next year's $7.9 billion, proving their confidence in Viet Nam's economy. The World Bank with $2.6 billion will again be the major multilateral donor and Japan, $1.76 billion, the major bilateral donor.
Asian Development Bank, Viet Nam, director Ayumi Konoshi said that ADB's 1.5 billion would be used in the public sector and for the development of Public-Private Partnerships. The ADB planned to provide Viet Nam with $10 billion to 2015, he said.
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