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Donors upbeat about nation’s recovery
The mid-year informal Consultative Group (CG) meeting for Viet Nam closed on Monday with donors expressing satisfaction with the Government’s handling of the economic turbulence and pledging continued support for the country to emerge from the crisis in a stronger position.
Delegates noted that Viet Nam faced various challenges wrought by the global economic crisis although there were signs that the situation was bottoming out.
"The IMF notes that Viet Nam is weathering the current global crisis relatively well," said Ben Bingham, the fund’s senior resident representative.
However, some adjustments in policies were needed to preserve macroeconomic stability. In addition to tightening monetary policy to rein in credit growth and provide greater support to the Vietnamese dong, the IMF stressed the need for the Government to agree with the National Assembly on a revised fiscal plan for 2009 "that addresses concerns that financing requirements are contained to levels consistent with maintaining macroeconomic stability".
Delegates also encouraged the Government to use the forthcoming laws on the State Bank, Credit Institutions, and the State Budget Law to advance reforms that will modernise monetary and fiscal management in Viet Nam as well as upgrade bank supervision.
"With some positive signs both globally and in Viet Nam, we note that there is optimism that the worst period is over, said the ADB Country Director in Viet Nam, Ayumi Konishi. "Macroeconomic stability and acceleration of reforms including that of State-owned enterprises (SOEs) will lead to greater confidence, which in turn will mitigate adverse impacts of the global economic downturn on Viet Nam," he said.
Delegates commended the Government’s efforts to maintain macroeconomic stability, paying particular attention to alleviating the economic burden on the poor and other vulnerable groups. Sakaba Mitsuo, Japanese Ambassador remarked that "it was appreciated that the Government of Viet Nam included in its economic stimulus package measures to strengthen social security along with those for economic growth".
Business concerns
Reporting on the outcome of the Vietnam Business Forum (VBF), Nguyen Van Lan of the International Finance Corporation assured participants that the business community remains committed to investing in Viet Nam, but also expressed concern over the legal framework that still lacks details and clarity. "The business community," Lan said, "requests to be consulted in a better and more timely manner on the drafting of legal frameworks governing the business climate in the future".
Social impacts
Delegates noted the Government’s efforts to mitigate the social impact of the economic slowdown, but said that more was needed in the case of vulnerable groups. They stressed the importance of reliable and timely data from sources like regular labour force surveys, which would support better targeted policy responses.
The United Nations Resident Co-ordinator, John Hendra, stressed the importance of data collection to policy making. "One of the things that the economic crisis has already shown is the real need for enhanced data collection and information systems in Viet Nam to better monitor the social impacts of the economic crisis, and how it is impacting specific groups, such as women, children, and ethnic minority and migrant workers. This kind of data is essential to ensure that policy responses are evidence-based and appropriate."
Meanwhile, the DFID Chief Representative in Viet Nam, Fiona Lappin, welcomed the Government’s efforts towards a better targeted, more inclusive and more streamlined social protection system. However given the problems facing the poor and migrant workers, she "urged the Government to bring forward a long term social protection system backed up by regular, good quality data and analysis".
Anti-corruption
Swedish Ambassador Rolf Bergman said that the most important and efficient way to fight corruption is to promote transparency and accountability throughout Government processes.
"Transparency and access to information are most needed for efficient use of resources and good results," he said.
The ambassador also emphasises the need to translate vision into practice. "The question of how to bring the Anti-corruption Law and the Anti-corruption Strategy into the life of each Government official, civil servant and ordinary citizen still needs to be addressed," he said.
Climate change
Government officials and development partners agreed that climate change poses new threats to the well-being of the Vietnamese population, especially for people living in low-lying and coastal areas. "We commend the Government on the measures taken to ensure the implementation of the National Target Programme in response to climate change," said Peter Lysholt Hansen, Danish Ambassador. He also urged the Government to start ‘climate proofing’ investments, publicise climate scenarios models and develop a climate change mitigation plan.
Harmonisation
Viet Nam’s development partners congratulated the Government on its continued commitment to improving the effectiveness of aid.
Australian Ambassador Allastar Cox said "The global economic crisis brings into focus how important it is to effectively use available resources, including ODA." Cox added that "the development partners welcome the Government’s preparedness to take the aid effectiveness agenda to a new level that is appropriate to Viet Nam’s imminent middle-income status and in the context of the next SEDP 2011-15."
In his closing speech, Minister of Planning and Investment Vo Hong Phuc expressed appreciation of the sincere, frank and open attitude of the donor community towards issues practical to Viet Nam’s development, especially against the negative impacts from the global financial slowdown and economic crisis, the challenges of climate change and Viet Nam’s transition towards middle income status, and how to improve the effectiveness of ODA projects.
The Minister said that "the Government highly appreciates ODA as a resource, considering it a stimulus measure in the crisis. The Government is committed to provide enough counter funding, as one dong in counterpart funding attracts four dong in ODA."
VietNamNet, VietNamNews
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