(MPI Portal) - Minister Bui Quang Vinh had a meeting with Mr. Axel Van Trotsenburg, Vice President of World Bank (WB), in charge of the East Asia and the Pacific on May 07th.
Having been to Vietnam as Vice President of WB, in charge of the Bank's concessional resources, this time in the role of Vice President, in charge of East Asia and Pacific region, he expected to reach a close working relationship with the Ministry of Planning and Investment.
He said that Vietnam ranks second behind India among those which have gotten benefits in the cooperation framework of the International Development Association (IDA – WB’s agency). The use of IDA funds has brought to Vietnam results of poverty alleviation, representing in the fastest speed of poverty reduction in Vietnam. WB’s projects have been expanded over the years with 55 projects worth US$ 8.75 billion until now in Vietnam.
Vietnam should focus on the issue of disbursement because it will affect negotiations and mobilization of IDA resources, said he.
At the meeting, Minister Bui Quang Vinh affirmed that WB’s IDA funds are focused on the impotant fields for the development of Vietnam, including: electricity, rural agriculture, transportation, urban, loans to support poverty reduction, administrative reform, education and healthcare.
The Minister said that Vietnam is facing difficulties in land clearance, reciprocal capital and the capacity of management boards. In 2012, the disbursement rate was 18.9% (if taking account of only IDA) or 15.9% (if taking account of both IBRD and IDA) which has been the highest disbursement rate of Vietnam in recent years. Disbursement capital has increased 100% since 2009 (disbursement capital was US$401 million in 2009 and US$863 million in 2012).
The disbursement rate in 2013 (WB fiscal year) was 14.6% compared with 15% of the East Asia - Pacific region (including IBRD/IDA). Vietnam is striving to obtain around 20% at the end of WB fiscal year.
Vietnamese Government is spontaneously developing a strategy to use the less concessional capital and other loans for investment in infrastructure sector. Currently, Vietnam is also cooperating with WB to draw up a list of focal infrastructure construction in Vietnam as well as to find the appropriate investment capital in this sector, to mobilize more private resources to the investment in this field in order to change the notion of investment by state budget capital in the previous years.
At the meeting, Minister Bui Quang Vinh also shared with the Vice President Axel Van Trotsenburg about public investment restructuring which WB is being concerned about. /.