The Asian Development Bank (ADB) has just confirmed that it will support
Vietnam to meet its target to reach upper middle-income status via three
pillars: comprehensive growth; improving economic effectiveness and
environmental sustainability.
The announcement was released by
ADB Country Director for Vietnam, Tomoyuki Kimura at a conference on October
31st, to launch the bank’s country partnership strategy for the 2012-15 period.
Much success but large challenge
According to ADB’s reports,
Vietnam has met with much success over the past two decades.
From 2007 to 2011, Vietnam’s
average annual GDP growth rate stood at 6.6 per cent, while per-head GDP rose
to $ 1,409 in 2011 from $ 843 in 2007. However, Vietnam is now still in the
list of lower middle-income nations.
ADB’s reports also said that
Vietnam is on the right track to implement the Millennium Development Goals, of
which several goals like the rate of children’s enrolment in primary schools,
the death rate of inborn babies and children under 5 years old and maternal
healthcare have been achieved before their deadline.
In addition, Vietnam achieved
many targets in regard to poverty reduction. While the poverty rate in Vietnam
was 58.1 per cent in 1993, it fell to 14.5 per cent in 2008. Vietnam is also
seen as a good example of exercising gender equality. The rate of females in
the Vietnamese workforce is relatively high and female deputies in the National
assembly make up 25.8 per cent, a high rate in the region. What is more,
Vietnam has maintained socio-political stability, which has helped the nation
focus its all efforts and assets on socio-economic development.
However, ADB also pointed out a
number of difficulties and challenges the country has to face.
Although Vietnam enjoyed a
comparatively high growth rate in the past, inflation continuously stood at
high levels (at about 13 per cent on average in 2007-2011 period) and the
competitiveness of the economy was low due to a shortage of skilled workers,
lack of infrastructure and obstacles in public administration. In addition,
Vietnam is facing a high risk from environmental pollution and climate change.
Focusing assistance on 6 priorities
Within the framework of the
bank’s country partnership strategy for the 2012-15 period, ADB pledged to help
connect local poor people and other disadvantaged groups to the development
process via projects on upgrading infrastructure, rural development,
approaching economic resources and supporting education and training
opportunities. In addition, ADB will back Vietnam in restructuring the economy,
improving policy-making and responding to environmental challenges.
In an effort to bring about the
highest efficiency for its assistance and knowledge transfer, ADB will
prioritise 6 areas: agriculture and natural resource; education; energy; finance;
transport; water supply; infrastructure; and urban services.
ADB will provide a number of
channels of assistance, such as loans, investment in shares, technical support
and policy consultancy in order to meet the various needs of Vietnam. According
to estimates, ADB will earmark $385 million for Vietnam per year in the
2013-2014 period and $395 million in 2015. The amount of funding form ADB in
the period of 2013-2014 will depend largely on the effectiveness of the
implementation of projects and the bank will also back local private firms in
participating in infrastructure projects, according to ADB officials.
ADB experts affirmed that to
respond to financial risks relating to the cost of restructuring the economy
and possible inefficiency of the public sector, ADB will strictly monitor the
financial impact of the current restructuring process and will regulate its
funding and aid programmes and may focus on the management of the public
sector. In addition, ADB will help augment abilities for central and local
governments in planning investment and implementing projects.
QĐND
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