Panel 1

“Getting and demonstrating results from development cooperation”

GEARING DEVELOPMENT COOPERATION

TOWARDS THE MDGs: EFFECTIVENESS AND RESULTS 5-6 May 2011 – Bamako, Mali

Cao Manh Cuong, DDGFERD – MPI of Viet Nam

VIET NAM’S SOCIO-ECONIMIC DEVELOPMENT (2001 – 2010)

HIGHLIGHT SPOTS

1. The average rate of GDP growth per annum is 7.5 percent during period 2001 – 2010.

2. Viet Nam has moved from the least developing country (LDC) to the lower middle income country in 2010 with GDP per capita income of 1,160 USD.

3. Viet Nam has made tremendous efforts in fulfilment of MDGs (VDGs) as a vehicle to achieve the national targets of promoting ecocomic growth, social development and poverty reduction:

Comprehensive Programme on Poverty Reduction and Growth Strategy (CPRGS)

MDGs (VGSs) integrated in the socio-ecocomic plans (balancing economic, social and enviroment achievements)

VIET NAM - 2/3 OF THE WAY ACHIEVING MDGs

Goal 1. Eradicate extreme poverty and hunger (achieved)

Goal 2. Universal primary education (achieved)

Goal 3. Promote gender equality and empower women (achieved)

Goal 4. Reduce child mortality (achievable by 2015)

Goal 5. Improve marternal health (strive to achieve by 2015)

Goal 6. Combat HIV/AID, malaria and other disease (strive to achive)

Goal 7. Ensure enviroment sustainability (difficult to achieve)

Goal 8. Develop global partnership for development (partly achieved)

CHALLENGES TO SUSTAINABLE DEVELOPMENT

1. The recent global economy crisis and threats (food, energy, etc) have caused negative impacts to the developing countries in their sustainable development.

2. The in-depth and broad integration into the world economy has presented Viet Nam a lot of challenges, especially in competitiveness of the economy.

3. Viet Nam is one of the five countries that suffers most heavily from climate change.

4. Like other Middle Income Countries (MICs) Viet Nam would face to MIC traps. To make its development sustainable, Viet Nam should find way to avoid these traps successfully.

1. Viet Nam has 51 Development Partners (28 bi-lateral and 23 multi-

lateral donors). 2. In 2000 – 2010 period: - Total value of ODA commitments: US$ 49.046 bil. - Total value of ODA under agreements: US$ 33.085 bil. - Total ODA disbursement: US$ 23.356 bil.

OVERVIEW OF DEVELOPMENT COOPERATION IN VIET NAM

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

8000.00

9000.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Commitment

Agreement

Disbursement

1. Ensure National Ownership 2. Use ODA Selectively3. Maximize the effectiveness and widespread

impacts of ODA4. Ensure Broad Participation of Beneficiaries5. Build Strong and Reliable Partnerships with Donor

organizations

KEY GUIDING PRINCPLES FOR EMHANCING AID EFFECTIVENESS

1. Respect for country leadership and ownership in the development and implementation of socio-economic development programs.

2. Alignment to government policies and programs, and commitment to support strengthened, transparent and accountable country systems.

3. Harmonization and simplification of aid procedures with Government to ensure effective implementation progress and to reduce transaction costs of aid delivery.

4. MfDR to implement consistently monitorable measures to meet planned development objectives.

5. Mutual accountability for development progress in general and ODA projects, programs in particular.

POLICIES OF DEVELOPMENT PARTNER IN VIETNAM

AID EFFECTIVENESS FORUM (AEF) A BRIDGE TO DEVELOPMENT EFFECTIVENESS

1. AEF is one of processes of CG and the Forum:

2. For dialogue on ODA as well as broader financing for development.

3. For identifying bottlenecks / opportunities in implementing aid policy.

4. To identify specific needs and interests of diverse aid partnerships.

5. For discussion towards HLF-4 in Busan.

2nd AEF Event (CG 2010)

1. Lack of consistancy between ODA and public invetment legal framework.2. Lack of harmonization in procedures between the Government and its Development Partners (especially at technical level.3. Capacity at sub-national level.4. In-sufficient mechanism for division of labour and complementarity based on comparative advantages of Development Partners.

A LOT OF PROGRESS BUT CONSTRAINTS STILL REMAINS

ON AID EFFECTVINESS AGENDA

11

Thank you for Your Attention