International Donors Pledge $64.32B for Vietnam So Far

International donors have pledged $64.32 billion in official development assistance (ODA) for Vietnam so far, the Ministry of Planning and Investment said in its report released at a recent meeting in Hanoi. The fund have poured in the areas as agricultural development, rural area, poverty reduction, economic infrastructure, environmental protection, natural resources, institutional building, and human resource development. Japan is the biggest bilateral donor in Vietnam with total pledged ODA hitting JPY1.778 trillion ($22.74 billion) so far.  The donors pledged to provide Vietnam with $7.905 billion ODA in 2011, just 2% lower than last year’s record high of $8 billion.  Vietnam needs around $30 billion in ODA next five years though it has become a middle-income country. The ODA is one of the key sources of dollars for Vietnam, after exports, foreign direct investment (FDI) and remittances. However, Veteran Journalist and Economist, Tran Trong Thuc urged Vietnam to reduce the use of ODA to improve efficiency and avoid a debt burden in the future. ODA disbursements in Vietnam are lower than the world’s average. Vietnam disbursed $28 billion out of $64 billion in ODA by the end of last year, including $3.5 billion in 2010. (Phap luat Vietnam – Vietnam Law Nov 3 p3)