In 2010, ODA disbursement is expected to hit around US $3.65 billion out of over US $8 billion committed by foreign donors to Viet Nam. The figure vividly illustrates the strong confidence of the international community in sound policies of the Vietnamese Government.
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Bai Chay Bridge, an ODA project in Ha Long City of the northern province of Quang Ninh
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Japan is Viet Nam’s largest ODA provider. Last year, the disbursement rate of Japan’s ODA stood at US $1 billion, equivalent to 13.5% of its registered ODA commitment for Viet Nam.
In 2009, the disbursement rate of projects using the World Bank’s ODA sources got better, said Mr. Victoria Kwakwa, WB Director in Viet Nam.
According to Minister of Planning and Investment Vo Hong Phuc, the high ODA disbursement can be attributed to close supervision of donors, transparent and open procedures, efficient spending of ODA.
Even though Viet Nam is facing with a relatively high debt rate, major donors like the WB, ADB, IMF, and Japan are still optimistic about the country’s capacity of debt payment.
However, it is necessary to speed up the ODA disbursement, said Minister Phuc.
It was reported that in March 2010, the proportion of disbursement in the WB-funded projects in Viet Nam was 16%, lower than the regional average of 23%.
According to many experts, slow site clearance and resettlement and ineffective ODA management at local level have mainly impacted on the disbursement rate. Meanwhile, the inharmonious procedures between Viet Nam and donor countries also hinder the ODA disbursement in Viet Nam.
To speed up the process, the Ministry of Planning and Investment was assigned to set up a framework for private enterprises to participate in the process./.