| Subject: xin xem tu vi |
Author:
Nguyen huu Tri
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Date Posted: 10:18:18 06/07/07 Thu
In reply to:
ODA
's message, "Re: xin xem tu vi" on 20:52:37 11/01/05 Tue
>>2. EVALUATION FOR RESULTS AND LIMITATIONS,
>OUTSTANDING IN PROCESS OF ODA ATTRACTION AND
>UTILIZATION IN PERIOD 2001-2005
>
>Attraction and Utilization of ODA in the recent period
>have been highly appreciated by the Party and
>Government and substantially effective. “ Many
>investment projects have been operated, financed by
>ODA capital, contributing to economic growth and live
>standard improvement of people” (Document of IX
>National delegation congress, page 240, National
>Political Publisher). The donors have unanimously
>considered that ODA in the recent period actively
>contributed in socio-economic development and poverty
>reduction.
>
>2.1 Main results
>
> Firstly, the ODA attraction and utilization in the
>past time have had an important part in successful
>implementation of the open-door policy,
>diversification, multilateral relations, based on
>conservation of independence, self-control and
>National sovereignty.
>
>The International Donor Community restored relation of
>development cooperation with Vietnam in 1993 was a
>great success of foreign policies of the Party and
>government, especially in the circumstance when
>Vietnam was being blockaded and embargoed.
>
>The huge commitment value of more than USD 29 billions
>throughout the period 1993-2004 has been an clear
>evidence to support and concur to the proper and
>rational socio-economic development policies of the
>Party and Government.
>
>The Loans and Grants incorporated with conditions of
>policy commitments to support reform such as Credit of
>standby Aid (SBA), Structure transfer fund from IMF,
>credit of structure arrangement subsidy (SAS) from WB,
>credit in accordance with Myazawa initiative of Japan
>to support private sector, assisted the national
>budget more than USD 1.5 billion. But this was not “a
>bargain” or “a cost” to get Loan and Grant. In
>contrast, the Vietnamese reform has been conducted
>following the given roadmap in conformity with the
>real conditions in the country and to meet the
>donors’ requirements. Therefore, these policy Loans
>actively contributed to transfer the centralized plan
>economy into market economy with socialist orientation
>under government control.
>
>ODA has been one of the bridges connecting Vietnam to
>other countries and international community, which has
>contributed to consolidation and strengthening
>political position of Vietnam in the region as well as
>in the globe, and promoted Vietnamese image to the
>world. When the donors believe in policies and
>guidelines of the Party and Government and strongly
>commit to support reform, it will be a positive
>factor, affecting to international community of
>investors to feel secure and activate investment
>activities in Vietnam.
>
>Secondly, ODA has supplemented an important capital
>source to budget investment in socio-economic
>development.
>
>In the period 2001-2005, ODA source supplemented about
>11% to gross social investment, and ODA distributed
>through budget accounting for 17% of the total budget
>investment. ODA has really become the important
>channel, complementing capital to the country’s
>socio-economic development.
>Although the amount of ODA mobilization is large
>enough, in which about 80% were preferential loans,
>Vietnam’s ODA debt was approximate USD 9 billions by
>31 December 2004. According to the foreign borrowing
>and repaying strategy, approved by Prime Minister,
>Vietnam’s foreign debt is laying in the safe corridor
>at the present. The total foreign debt of the whole
>economy in 2001 (the numbers in the parentheses are
>the maximum limits in accordance with international
>experience) was 39% GDP (50-60%), accounted for 83,7%
>total export revenue (150%); debt service (amount of
>money, paying for original debt and interest)
>accounted for 9.9% total export revenue (15%),
>governmental debt service was 6% of the total
>government income (10%). WB has also evaluated that
>Vietnam’s foreign debt was in safe limit.
>
>
>Thirdly, ODA in the past period supported
>socio-economic infrastructure development, contributed
>to economic growth and economic structure movement on
>the way of industrialization, modernization, social
>service improvement and poverty alleviation.
>In the period 2001-2005, ODA capital resource was
>focused on development of socio-economic
>infrastructure. Generally, ODA structure was divided
>to sectors as follows:
>
>SIGNED ODA STRUCTURE FOR INDUSTRIES, SECTORS IN PERIOD
>2001-2005
>Measurement unit: UDS million
>Industries / Sectors Total ODA ODA Loan (signed) ODA
>Grant (signed) % of total ODA for period
>Agriculture and Poverty Reduction 1607.43 1299.63
>307.80 16.05
>Industrial and Power sectors 1582.49 1536.40 46.09
>15.80
>Transportation and Telecommunication 2540.76 2444.61
>96.15 25.36
>Science, Technology and Environment 1005.3 725.78
>279.52 10.03
>Health care – Education – Social areas 1062.67 483.70
>578.97 10.61
>Other Sectors 2218.85 1804.94 413.91 22.15
>Total
> 10017.50 8295.06 1722.44 100.00
>Source: Ministry of Planning and Investment – data of
>the first 6 months of 2005
>
>In the area of economic infrastructure, the
>transportation and telecommunication sectors were at
>highest priority with ODA investment of more than USD
>2.54 billions, among them most ODA was preferential
>loan, ODA grant only accounted for 3.78%. Due to
>great ODA concentration in this area, almost sectors
>in this area also had a considerable advancements,
>especially in the traffic road system. Many
>transportation constructions have been reconstructed
>and newly built which positively contributed to
>economic growth and poverty alleviation. For example,
>Northern road system (State highway 5, 10, 18),
>National highway 1A, The Cross-Asia highway Ho Chi
>Minh City – Moc Bai, tunnel through HaiVan pass, Deep
>water seaport Cai Lan, Tien Sa Port (Da Nang), Saigon
>Port, Tan Son Nhat International Airport, the big
>bridges like My Thuan Bridge, Can Tho Bridge, Thanh
>Tri Bridge, Bai Chay Bridge e.t.c. Besides, in other
>sectors such as railway, inland waterway, there were
>many ODA-financed projects, contributing to their
>reconstruction, upgrading and development.
> There have been several ODA projects in
>telecommunication sector, such as coastal fiber
>optical cable project, rural telephone project…
>
>In period 2001-2005, in the Industrial and Power
>sectors were invested USD 1.58 billion of ODA capital
>in order to reconstruct, improve and develop many new
>large power plants (Phu My 2.1 thermo-electric plant
>with capacity of 288 MW; Pha Lai II thermo-electric
>plant with capacity 600 MW; Ham Thuan-Da Mi
>hydro-electric plant with capacity of 475 MW; Phu My I
>thermo-electric plant with capacity 1090 MW; O Mon
>thermo-electric plant with capacity of 600MW; Dai Ninh
>hydro-electric plant with capacity 360 MW …), renovate
>and expand national electricity wire network and
>electricity delivery wire network for cities and
>industrial zones to meet the demand of additional
>charge, build transformer stations, 500KV electricity
>transportation wire lines and implement the rural
>electrification programme.
>
> Agriculture and Rural Development and Poverty
>alleviation attracted USD 1.6 billion, in which about
>19% was ODA grant. This capital source has been used
>for agriculture development (17.59%), forestry
>development (6.57%), irrigation construction (26,39%),
>fishery and aquaculture (0.58%), rural development and
>poverty reduction (48.87%). Thanks to ODA support,
>rural infrastructure has been remarkable improvement
>(irrigation, rural electricity wire network, school,
>medical station, rural road system, drinking-water
>supply, small-scaled rural credit facilities …),
>contributed to comprehensive rural development and
>poverty reduction.
>
> In social infrastructure area, ODA was
>preferentially used to support education, health care
>and social development with ODA amount of USD 1.062
>billion in period 2001-2005
>
> In education sector, in period 2001-2005, ODA was
>attracted in order to strengthen material technical
>infrastructure of teaching and studying activities at
>all level (primary education project, junior high
>school project, senior high school project , tertiary
>education project, vocational project …), train
>teachers, strengthen capacity in education planning
>and management, send students to abroad for training
>at graduate and postgraduate levels, send thousands of
>state officers to abroad to train and retrain in the
>fields of economics, science, technology, and
>management. generally, ODA contributed noticeably to
>education budget funding about 8-10% annual sector
>budget spending, and improve material infrastructure
>for school learning and teaching, strengthen student
>capacity and educational institutions.
> In the health care sector, the ODA grant accounted
>for a high percentage, 63,41% of total ODA of USD 0.5
>billion in period 2001-2005 was used to strengthen
>material and technical infrastructure for medical
>examination and treatment (built and furnished medical
>equipment to several hospitals in cities, districts
>and commune medical stations), build National
>antibiotic production, blood transfusion centers…,
>strengthen activities in family planning, prevent
>HIV/AIDS and other infectious diseases such as
>tuberculosis, malaria …; train medical cadres, assist
>in policy building and improving medical branch
>management capacity.
> In addition, in the period 2001-2005, ODA was used to
>build drinking-water, drainage and rubbish processing
>systems in most big cities and provincial towns,
>contributing to environment improvement, which are the
>urgent need of urban and concentrated population
>areas nowadays.
>
>Fourthly, ODA has contributed remarkable in absorption
>of modern technology and advanced management
>experience, improving human resources and institution
>development.
> On the one hand, ODA-financed projects directly
>created material and technical facilities for research
>and development activities (new laboratories in
>universities and science research institutes, built a
>remote sensing station …), on the other hand, through
>many ODA-financed investment projects, new
>technologies, advanced management skill and experience
>have been transferred (modern road and bridge
>construction technologies, environment protection
>technology and crop and livestock variety selection
>technology…).
> ODA has contributed to institution development,
>especially support finalizing and create many laws,
>namely Enterprise Law, Land Law, Commercial Law,
>Investment Law, Tendering Law, Competitive Law,
>Anti-corruption Law … as well as law propaganda and
>education.
> ODA-financed projects have assisted in improving
>management capacity of ministries and local government
>organs, consequently the professional skill and
>English level of state cadres have been considerable
>progressed.
>
>Fifthly, ODA investment have contributed to
>socio-economic development and poverty reduction in
>many provinces, especially in poor remote area and
>ethnic minority territory.
>
>SIGNED ODA STRUCTURE DIVIDING TO LOCAL BENIFICIARIES
>PERIOD 2001-2005
> Measurement unit: million USD
>Areas Signed ODA
>Northern midland and mountainous regions 358.57
>Red river delta and Northern economic main points
>328.47
>North of central region, central coastal region and
>economic main points of central region 800.96
>Central highland 95.04
>South-East region and Southern economic main points
>791.87
>Mekong delta 191.01
>Source: Ministry of Planning and Investment – data of
>the first 6 months of 2005
>
>In the past years, Vietnam attained a great
>achievement of poverty alleviation, poor rate of
>higher 50% in 1993 was reduced to about 10% in 2003
>(in accordance with Vietnam standard) that deeply
>impressed the donors and ODA capital had an important
>part in this success. Many ODA-financed projects
>directly assisted provinces and cities to build
>drinking-water supply system, develop rural electric
>wire network, construct irrigation system, build
>school, hospital, medical station, implement the
>agriculture, forestry and aquaculture expansion
>encouragement programmes, supply small-scaled credit …
>
>
>2.2. Limitations and its reasons
>ODA attraction and utilization activities in the past
>years have been revealed following limitations and
>inadequacies:
>
>Firstly, lack of the comprehensive orientation of ODA
>attraction and utilization using as a basic for
>concretizing the Party and Government’s guidelines and
>policies in mobilizing this resource to support the
>implementation of socio-economic development, and
>poverty alleviation at national, ministerial and local
>levels.
>This weakness concurrently is reason for reducing
>Vietnam’s ability to bring into play its active role
>and initiative to ODA attraction and utilization as
>well as organization process of implementation,
>consequently it reduces the efficiency of this
>resource management and utilization.
>
>Secondly, system of legal documents concerning ODA
>management and utilization is not complete, unclear,
>not synchronous and contains many differences in
>comparison to the donors’ regulations and weak legal
>documentation enforcement.
>In the period 2001-2005, government issued new decree
>on ODA management and utilization. Although this
>decree has many improvement points compared with
>previous decrees of the same kind, but ODA has been
>ruled by many other legal regulatory documents
>(regulations of construction investment management;
>bidding, compensation, emigration, site clearance …)
>with content not in consistent with government decree
>of ODA management and utilization. Moreover, there are
>a lot of specific legal features in the ODA
>utilization process and ODA recipient-country have to
>comply with donors’ regulations as well as
>international practices.
>
>Thirdly, capacity of cadres participating in
>nationally administering ODA at all level, especially
>at local level and personnel who directly take part in
>managing projects is still not good at professional
>skill, managing skill, English knowledge and
>international cooperation experience...
>
>Fourthly, mechanism of centralized management
>organization, coordination and utilization of ODA at
>all level have not systematically been built at
>national, local and grassroots levels.
>ODA management organizations at some provinces still
>disperse and overlap, that hinder management and
>coordination activities as well as cooperation with
>donors. At the present, there is no standard model of
>programme/project management unit with clear-defined
>functions, tasks, responsibilities and power. Pay and
>allowance system being very slowly improved, prevent
>ODA programme and projects from attracting skilled
>staffs and specialists, among them there are many
>multimillion-dollar investment projects.
>
>Fifthly, ODA programme/project monitoring and
>evaluation activity have not been paid an appropriate
>attention. Regulations of financial report and payment
>have not been strictly implemented and lack of needed
>sanctions.
>The above-mentioned main difficulties, weaknesses and
>inadequacies concurrently are subjective reasons
>reducing efficiency of ODA attraction and utilization
>in the past period. However, there are objective
>reasons as follows:
>
>1) Vietnam has received and utilized ODA capital for
>more than 10 years (other countries in the region have
>received ODA for 30-40 years), therefore Vietnam is
>very short of knowledge and experience.
>
>2) In the process of receiving and utilizing ODA, some
>donors being affected by different reasons, do not
>facilitate Vietnam to bring into play its active role,
>and dictate content, management modality and condition
>of financing.
>
>3) Several donors have the complicated ODA process and
>procedure, which sometime are unclear. Others have
>inflexible management and not delegate much power to
>their resident missions in the recipient’s country,
>consequently hinder and delay the implementation of
>ODA programme or projects.
>
>2.3. Main lessons
>
>1) Lesson in political and economic sides of ODA
>Proper awareness of ODA on two woven political and
>economic sides help Vietnamese government to obtain
>appropriate view of point at this resource in order to
>concurrently take advantage of international
>assistance and effectively implement independent and
>self-control guideline, diversification and
>multilateral foreign relation of the Party and
>Government.
>Each donor has global ODA strategy as well as mid-term
>and short-term programme of cooperation with Vietnam,
>specifying clearly aims and requirements of providing
>ODA. Therefore Vietnam should carefully study those
>strategies and programmes to behave adequately in
>order to ensure its political and economic interests.
>
>2) Lesson is of that ODA is supplementing capital
>resource, catalyzing development
>In the national aspect as well as in aspect of
>ministry, industry, province and beneficiary’s unit,
>ODA only contributes to motivate development process,
>expand scale and has a part in added value, but it
>completely cannot replace endogenous resource, playing
>the decisive role in the country’s development. This
>lesson help Vietnam gain proper awareness, creating
>basis for effective and reasonable utilization of ODA.
>
>3) Lesson is that, ODA loan and ODA grant are not free
>money
>Many people affected by old administration mechanism,
>still have been used to being subsidized, consider ODA
>as a free money. They think that Government borrows,
>government pays, so they lack of responsibility for
>effective utilization of this capital source.
>
>Ultimately, both ODA-loan and ODA-grant are the amount
>of money got in advance and have to be repaid later in
>terms of material value or obligation. Awareness of
>this problem will help Vietnam to raise sense of
>responsibility in the process of ODA absorption,
>management and utilization.
>
>4) Lesson is of that government must have strong
>commitments, closely directing activities and people
>need to be widely participated in the process of ODA
>attraction and utilization.
>When government has strong commitment and closely
>direct ODA activities, at the same time, people have a
>chance to widely participate in the process, whatever
>ODA programme or project will be implemented on the
>projected time with high quality, efficiency and
>sustainability.
>ODA is used for supporting the implementation of
>development target of beneficiary’s unit, therefore,
>this capital source must be grafted onto master-plan,
>plan and programme of ministries, branches,
>beneficiary’s units and under closely directed by
>leadership of relevant levels. ODA is closely
>connected to people’s responsibility and interest,
>thus they need to be motivated to take part in ODA
>activities, materially and mentally contribute to ODA
>operations as well as facilitate them to monitor
>implementation process.
>5) Lesson is that, build a reliable cooperation
>relation between donors and recipient-country and
>implement the commitments rigorously.
>Dialogue and sharing information with donors on
>difficulties, achievements, challenges and solutions
>of socio-economic development process are the best way
>to build the belief and gain the consent and support
>of the donors.
>
>Strictly and fully implementing all international
>commitments not only promote the realization of
>achieved international agreements, but also create a
>prestige in international relation in common and
>development cooperation in particular.
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