Vietnam Needs More Transparency in ODA Use for Poverty Reduction Projects

Vietnam should raise transparency in using official development assistance (ODA) and improve disbursement form for its poverty reduction projects, an official from the UN Development Program (UNDP) said. The country is facing challenges in ensuring social security policies. Macroeconomic fluctuation like high inflation rate is causing more burdens to the poor, UNDP Deputy Country Director to Vietnam Christophe Bahuet said. Bahuet added that Vietnam should pay more attention to ethnic minority groups in the implementation of social security project in the 2011-2020 period with an aim to reach per capital income of $3,000 by 2020. UNDP and other partners will continue cooperating with ministries and agencies in orienting socioeconomic development and poverty reduction, committing further supports to help it alleviate poverty. Foreign donors still pledged to provide $7.88 billion in aid for Vietnam this year despite the global economic uncertainty.  Vietnam reports 3.05 million poor households and 1.61 million near-poor ones, accounting for 14.2% and 7.53% of its total 87-million population, the Ministry of Labor, Invalids and Social Affairs (MOLISA) said. In 2011, the country will spend nearly VND1.81 trillion ($87.44 million) on a sustainable poverty reduction program and targets to cut the poverty rate to between 4%-5% by 2020 from 9.45% in 2010 and 22% in 2005. (Dau Tu – Investment June 22 p3)