Báo cáo: "Impact of Japan’s official development assistance on Vietnam’s socio-economic development"

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Official Development Assistance (ODA) plays an important role in Vietnam’s socio- economic development. Amongst all of Vietnam’s ODA donors, Japan has been the largest bilateral one for the last two decades. This report mentions the following: Overview of ODA and Japan’s ODA to Vietnam; Analysis of the impact of Japan’s ODA on Vietnam’s socio-economic development; Recommendations to attract and increase the effectiveness of Japan’s ODA in Vietnam.

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VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 Impact of Japan’s official development assistance on Vietnam’s socio-economic development(1) Assoc.Prof.Dr. Nguyen Xuan Thien*, MA. Nguyen Viet Khoi Faculty of International Business and Economics,University of Economics and Business, Vietnam National University, Hanoi, 144 Xuan Thuy, Cau Giay, Hanoi, Vietnam Received 7 September 2010 Abstract. Official Development Assistance (ODA) plays an important role in Vietnam’s socio- economic development. Amongst all of Vietnam’s ODA donors, Japan has been the largest bilateral one for the last two decades. This report mentions the following: Overview of ODA and Japan’s ODA to Vietnam; Analysis of the impact of Japan’s ODA on Vietnam’s socio-economic development; Recommendations to attract and increase the effectiveness of Japan’s ODA in Vietnam. 1. Overview of Official Development Assistance Lobbying and the signing of ODA contracts and Japan’s Official Development Assistance to are carried out in donors’ conferences, Vietnam * including mid-term meetings in the middle of the year as well as an official conference at the end of the year. These conferences were at first Before 1989, Official Development organized in foreign countries but now mostly Assistance to Vietnam mainly came from the take place in Vietnam so that donors get the Soviet Union, Eastern European countries, some chance to understand Vietnam’s developing Northern European capitalist developed nations situation better and are able to meet domestic and international organizations such as the United partners such as the non-governmental Nations. Since the collapse of the Soviet Union and East European socialism, Vietnam lost an organizations (NGOs), the private sector and important source of foreign aid. However, with community representatives. It presents a good the opening of the economy and the start of the opportunity for Vietnam to show its process of world integration, Vietnam has started achievements in economic development and to receive ODA again from developing countries brings the image of the country closer to and international organizations since 1993.(1) international friends. From 1993 to the middle of 2009, Vietnam held up to 16 official ______ conferences and 17 mid-term meetings of this * kind. After these meetings, donors pledged to Corresponding author.Tel.: 84-912189554 provide Vietnam with over 42 billion USD E-mail: thiennx@vnu.edu.vn (1) This topic was presented by Nguyen Xuan Thien and worth of ODA - 15-20% as non-refundable aid Nguyen Viet Khoi at the Second International Conference and the rest as preferential loans. of The Japanese Studies Association in Southeast Asia Up to now, Vietnam has had relationships titled "Japanese Studies in Southeast Asia: The Past, Present and Future" held on 22-23 October 2009 in Hanoi, with 25 bilateral donors such as Japan, Korea, Vietnam. 1
2 N.X. Thien, N.V. Khoi / VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 Australia, Sweden, Switzerland, France, Canada Japan alone accounts for 40% of total aid. Other and England, 22 of which are annual donors. partners such as the EC, UNDP, France and Vietnam has also established multilateral Oxfam (Great Britain) have also carried out relations with 15 international organizations effective activities in various fields, especially such as the Asian Development Bank (ADB), centering on poverty reduction, community development and human resource improvement. the World Bank (WB), the European Commission (EC) and the International Finance As mentioned, Japan is the largest donor to Corporation (IFC). Besides, Vietnam also Vietnam since 1993. Japan’s total ODA in the cooperates with more than 350 NGOs which period 1993 to 2005 was 1,167.1 billion yen of provide an average of 80 million USD in non- which 13.27 % were in the form of grants and refundable aid. Our major donors are Japan, the 86.77% in the form of preferential loans. The rate WB and the ADB, whose funding is of preferential loan disbursement was 40.15%. approximately 70% of total committed ODA. EY 1 ,3 5 0 ADB 1,1 2 0 WB 1 ,11 2 J ap a n 28 7 Ko r e a 250 NGO 228 F r an c e 11 5 USA 1 01 UK 90 UN 90 Ge r man y 85 De n ma r k 80 Au st r alia - 200 400 600 800 1 ,0 0 0 1 ,2 00 1 ,4 0 0 million USD Source: Vietnam ministry of planning and investment Figure 1: The Top ODA Donors in Vietnam in 2008. Vietnam also receives aid from Japan through triangle’s development scheme (the junction of technical assistance between Japan-ASEAN, Vietnam-Laos-Cambodia) via the Japan-ASEAN Japan-GMS (Greater Mekong Sub-region), and Integration Fund, which was committed at the Japan–Indochina agreements. For instance, Japan Japan-Mekong Foreign Ministers’ meeting in January, 2008. financed 20 million USD for the Indochina 120 100 80 Y nb n e illio 60 40 20 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 59.5 66 82.1 92.4 96.5 100.8 112 86.4 91.6 92.4 91.7 94.6 100.9 Total 7.3 8.1 12.1 11.4 11.5 12.8 10.7 15.5 17.3 13.1 12.4 12.6 10.1 Grand aid 52.3 58 70 81 85 88 101.3 70.9 74.3 79.3 79.3 82 90.8 ODA loans (committed) 1.16 1.76 4.9 21.2 29.2 74.7 63.9 37.2 29.8 55 66.5 61.2 ODA loans (Disbursed) Source: Vietnam ministry of planning and investment Figure 2: Commitment and Disbursement of Japan’s ODA to Vietnam.
3 N.X. Thien, N.V. Khoi / VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 3. Supporting socio-economic development and At the moment, Japan's aid to developing poverty alleviation countries has declined due to ongoing economic problems. In the meantime, however, Vietnam ODA has played a vital part in the remains Japan’s preferred aid recipient. considerable success of Vietnam’s socio- Japan's new policy on providing ODA for economic development and poverty alleviation. Vietnam in the upcoming years will focus on These goals are also highly agreeable with the the following areas: international donor community and - Promoting growth including: improvement governments, for example, Vietnam’s of the investment environment, development of comprehensive strategies on growth and small and medium enterprises as well as the poverty alleviation and millennium private sector, transportation, energy and development objectives between 2001 and power, telecommunications, human resources, 2010. To achieve these goals, ODA’s allocation and economic reforms such as the reform of should focus on the following areas: state-owned enterprises. a) Infrastructure development - Improving living standards and conditions On a large scale, ODA has been intensively including the areas of education, healthcare, invested in both national and local rural development, urban development, constructions such as national highways, environmental concerns and living standards provincial roads, port upgrades, hydropower and conditions. plant systems and high voltage power transfers. - Enhancing institutions including Until the end of 2003, ODA projects have improvements in the legal system and helped Vietnam to restore, upgrade and build administrative reforms. 3676 km of highways, about 1,000 km of provincial highways, and 188 main bridges on the national highways with a total length of 2. Analysis of the impact of Japanese Official 33.7 km. Among these projects, many are very Development Assistance on Vietnam’s socio- important such as the No. 5 route linking Hanoi economic development to Hai Phong, and the national highway 1A from Hanoi to Vinh and Ho Chi Minh City to In recent years, ODA has been an effective Can Tho and Nha Trang. Other major projects source of support for Vietnam’s development, have also been implemented such as My Thuan especially as Vietnam is still a poor country and Bridge, the Hai Phong and Sai Gon seaport needs to attract outside capital to achieve its upgrade, the Cai Lan deep-water port economic goals, namely the processes of innovation, industrialization and modernization. construction, the Tien Sa and Da Nang port Between 1996 and 2000, Japan’s ODA restoration, the construction of many electric accounted for 12% of total social investment factories such as Phu My 1, Phu My 2, Ham capital, the equivalent of 24% of total Thuan-Da Mi, Song Hinh, Nhim, Pha Lai 2, Tra investment capital from the budget or 50% of Noc et cetera, and the 500 kV North-South line state credit capital for development and as well as the 220KV line installation from investment. (An overview of ODA in Vietnam, Playku-Phu Lam to Tao Dan-Nha Be. Ministry of Planning and Investment, Social- According to joint research conducted in Economic Information 2003). 2003 between the Japanese School of Policy ODA to Vietnam has two main goals: Research and the Vietnamese Ministry of supporting socio-economic development, Planning and Investment, major ODA projects poverty alleviation and administrative reforms. conducted in the 90s greatly impact economic
4 N.X. Thien, N.V. Khoi / VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 growth and poverty alleviation by connecting With regards to social development, at a development centers to rural areas of Vietnam. world conference on social development In fact, these connections enable the rural organized by the United Nations in Copenhagen access to social services and attract investment, in 1995, Vietnam joined The Idea 20/20, which stimulating economic growth in rural areas. allocated 20% of the total budget and 20% of total ODA for basic social services. These efforts were At the local level, small ODA projects such reconfirmed by developing countries and the as the development of power, roads, schools international donor community in the Hanoi and stations or water supply and waste Consensus meeting on the Initiative 20/20 on June treatment projects are very practical and helpful 10th, 1998. Vietnam became one of the first in improving local standards of living. ODA developing countries to increase investment in also helped to renovate 10,000 km of roads and basic social services, especially on healthcare and 31 km of rural bridges and expanded the education programs. electricity network to over 30 provinces and In implementation of the Idea 20/20, a cities. Besides support in the development of report in 1999 on basic social services in simple infrastructure, ODA projects have Vietnam, compiled by the UNDP and the helped to develop many key and modern Vietnam Government, indicated that the state constructions such as the upgrading of Bach budget for basic social services had Mai Hospital (Hanoi) and Cho Ray Hospital continuously increased since 1990 and had (Ho Chi Minh City). Moreover, ODA has reached 17.1% in 1997 (8.5% of the UN’s effectively supported many programs related to standards). Assistance in basic social services urban development such as transport reached 10% of United Nations standards in infrastructure upgrades, safe water supply, and 1997 (UNDP, UN and Government Joint effort sanitation and waste treatment. to protect basic social service spending, 10 b) Development of education and training December 1999). and implementation of social programs c) Socio-economic development in ODA projects are mostly used for important agricultural, rural and areas of extremely social programs such as population and difficult circumstances development programs, vaccination programs, Investment in agriculture and rural children’s nutrition programs, initial healthcare development in Vietnam mainly comes from programs and HIV/AIDS and drug prevention the following sources: 1) Taxes on agricultural programs. land used for construction in rural areas 2) Until the end of 2003, ODA projects for Capital funding from the locals for the education and training reached about 550-million construction of infrastructure in rural areas, and USD (accounting for 8.5% of total expenditure on 3) ODA from foreign countries. education), which has helped improve the quality Thus, it can be clearly seen that ODA is an and effectiveness of Vietnam’s education system important source of funding for agricultural and and enhanced technical facilities. Such assistance rural development. Up to early 2004, there have progressively modernizes Vietnam’s education been 156 new projects funded by a total amount system in order to help it catch up with education of more than 1.4 billion USD of ODA, standards in the region. Particularly, most ODA especially in the forms of preferential credit projects for education and training were provided granted to farmers to create side employment, in the form of non-refundable aid through encourage agriculture and fishing and develop independent technical cooperation projects. (An rural infrastructure. (A general view on ODA in overview of ODA in Vietnam, Ministry of Vietnam, Economy - Society News, 12th (24) Planning and Investment, Socio-economic publication 2003, page 24). Information, No.12 (24) 2003, p. 24).
5 N.X. Thien, N.V. Khoi / VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 ODA has positively supported hunger and programs, especially with respect to elimination and poverty alleviation programs community participation in policy design for development. including priority programs such as Program 135 on economic development for communities b) Structural adjustment and economic reform existing under extremely difficult circumstances, The main point of this particular target is to Program 133 on the development of northern provide technical support and advice on mountainous provinces, the 5-million-hectare planning and deployment of the first stage of Forest Program, the Initiative of Central Provinces reformation projects for state-owned economic, on Lightning and Natural Calamity and so on. banking and private sectors, especially for small and medium developing enterprises. c) Administrative and legal reform 4. Supporting reforms Administrative reforms are the biggest The second biggest aim of ODA is to concerns of the ADB, UNDP, Denmark, support holistic reform and innovation to create Sweden, Germany, and Holland, among others. an open market economy in Vietnam. This has Many projects on technical and financial always been the priority of sponsors such as support are proposed and deployed to assist Japan. For example, according to the administrative reforms in Vietnam, including framework of the Miyazawa Initiative, Japan the planning and implementation of general granted ODA to Vietnam to support private programs on administrative state reforms over area development, audit state-owned the 2001 - 2010 period. Two basic aspects of enterprises, and convert non-tariff trade barriers this program are exchange of traditions and into tariff trade barriers. Under Vietnam’s customs and policy dialogue. operation strategy in 1995, the ADB regarded In the field of legal reform, sponsors are policy reform and institutional development as positively supporting a general strategy on legal its first priority while most of ODA granted by reform to be issued in 2007 which focuses on the World Bank was in the form of structural the following four aspects: 1) Principles and adjustment credit. framework to be used in developing the Since 2001, in addition to regular aid, all economy and civilian society 2) Institutions and sponsors have pledged to a special kind of aid the Constitution 3) Law education and to enhance and stimulate reform in Vietnam. In specialized training 4) Income transparency and general, ODA supporting reform in Vietnam diffusion of information on the law. (Report on focuses on the following fields: Vietnam development in 2002: Implementing a) Policy and institutional aid reform to poverty alleviation and quicker growth, World Bank Vietnam, page 64, 2003) The goal is to plan a method of deployment, progress assessment, and supervision of the Together with support in the planning process process of policy implementation, especially for the general program in state administration that relating to reform efforts as well as hunger and legal reform programs for the 2001 - 2010 elimination and poverty alleviation. For period, ODA also helps to reform and upgrade the instance, ODA helps to carry out the studying, quality of the administration and law system by planning and assessment of socio-economic assisting in staff development, promoting good development programs, holistic strategies on practices in budget allocation, clarification and growth, hunger elimination and poverty simplification of administrative procedures, alleviation, and Vietnam’s millennium issuing legal documents, encouraging the development goals. Moreover, this activity also community to take part in the planning of helps to evaluate the efficiency of aid projects development policy, and promoting dialogue and
6 N.X. Thien, N.V. Khoi / VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 development-partnership mechanisms among receivers and transportation cost increases dramatically due to diseconomies of scale. sponsors, community, non-governmental organizations, enterprises and the government. - Unclear sponsorship regulations of some donors - Although almost all donors have pledged 5. Recommendations to attract and increase to invest in the private sector and provide the effectiveness of Japan’s ODA in Vietnam assistance to every organization, most projects are actually executed only by the government 5.1. ODA management and its offices. In contrast, NGOs and companies in the private sector have few The ineffective administrative system is the chances to cooperate with donors, except by main obstacle to ODA management, which participating in meetings. slows down the implementation of investment projects. There are several common concerns - The donors have not found specific including: methods to assess the effectiveness of projects, leading to dishonest acts by some partners and - Slow land clearance due to improper incomplete programs. Most projects do not take planning, inappropriate compensation and into consideration long-term issues and lack of corruption. coordination. - Lack of reciprocal capital or late In dealing with these problems, the Prime allocation of reciprocal capital. The main Minister signed the 17/2004/CT-TTg decree on reason for this is inadequate budget. However, speeding up ODA disbursement. This paper due to misallocation as well, there is still mentioned two issues: ODA institutional reform inessential spending on attracting ODA based on reviewing the 17/CP decree on measures, which require funds. managing and using ODA and the - Late procurement due to lack of establishment of an intra-ministerial working transparent organizational processes and the group to evaluate the implementation of ODA “request-give” regime resulting in time- projects. There are also other suggestions to consuming and under-table lobbying. improve the quality of managing and using ODA in Vietnam. The following are some - Incomprehensive administrative measures focusing on basic issues: procedures in ODA projects, especially with regards to tax procedures. - Enhancing ODA management capacity: focusing on officers’ qualification and - Personnel inefficiency administrative reform from the central to the - Failure to provide seamless access to local level. The Ministry of Planning and capital, especially for the private sector due to Investment is trying to complete a program to the centralized management of ODA strengthen ODA management capacity, which However, there are also some problems on attaches special importance to institutional the part of the donors, such as: reform and human resources. - Incompatibility of priorities or regulations - Diversifying forms of funding: in addition on types of aid with Vietnam’s situation and to aiding through projects, other forms of non- conditions. Many donors make decisions project funding in long-term programs, which without referring to Vietnamese partners or embrace all fields and link with other areas, conducting studies into feasibility. Some are should be encouraged and attracted. motivated by political interests. - Besides the function of an important - Difficulty of fund allocation when different source of capital for development assistance donors have different priorities. There are repeat capital, ODA should be exploited in terms of
7 N.X. Thien, N.V. Khoi / VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 providing policy consulting for the government However, the speed of implementation of ODA by donors such as how to write polices, projects has still been very slow and the decentralize power, reform the economy and disbursement has not yet met given allocate budgets prudently. It is a useful tool for requirements. It is expected that total disbursed Vietnam’s development in the long term. ODA in 2007 was about $2 billion, surpassing the target of 5%. Yet, in comparison with the - Avoid a passive attitude of dependence on requirements of ODA disbursement, only $3.9 foreign assistance, step up the effectiveness of billion was disbursed from 2006 to 2007, the using ODA and fight against corruption. equivalent of 32% of the total expected ODA - Harmonize and simplify capital disbursement in the period 2006 - 2010. This management and disbursement processes. implies that there is a need to work out suitable Vietnam should work out an appropriate model methods to speed up the process in the of practice to those involved including remaining three years so as to reach the planned government, donors and receivers. total of $11.9 billion of ODA. - In particular, Vietnamese authorities This situation has brought about concerns should narrow the gap between donors and voiced by the Vietnamese government and Vietnam in order to attract more capital. donors. Regarding policies, the government has Though the main target of international issued guidelines to attract and use ODA so that assistance is hunger elimination and poverty ministries, branches and localities can mobilize alleviation, most donors and the Vietnamese ODA based on these guidelines to achieve government emphasize on the sustainability of preferred targets. A legal system on ODA such capital as well as the quality of economic management and use has been developed in a growth. Foreign donors are often very fairly complete, consistent and synchronized interested in Vietnam’s effort in reforming the way. Implementing the Hanoi Core Statement, economy, particularly in state-owned companies and the banking system. donors comply with the plan of developing Vietnam’s economy and society when - Finally, ODA should be made available to providing ODA, which is consistent with private businesses, NGOs and community branches’ and localities’ orientations in organizations. This is because these groups are development. in real need of capital. This also contributes to the anti-corruption process and the removal of However, attracting and using ODA have red tape from the administrative system. not lived up to these expectations because of some shortcomings. Firstly, Vietnam’s process and internal procedures for ODA management 5.2. Measures for attracting and speeding up and use are still complex and not transparent Official Development Assistance disbursement which hinders the projects’ preparation and Attracting ODA has many advantages such implementation. Secondly, some regulations of as a stable political and social environment, the Vietnamese government and donors are not high economic growth, and integration into the congruous, especially in matters of world economy and the region as a full member immigration, land clearance and bidding. of the WTO. Besides, the institutional and legal Thirdly, the capacities for managing and environment has been improved to gradually organizing projects are still weak, especially at meet international standards, subsequently the local level. These current weaknesses are consolidating and expanding cooperation challenging to the authorities in the context of a between Vietnam and international donors. strongly decentralized evaluation and approval The achievements in cooperation and process of projects at the Ministry and development have been extremely encouraging. provincial People’s Committee level.
8 N.X. Thien, N.V. Khoi / VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 reached. Until now, while much research has While these shortcomings have been been carried out to define the standards of overcome, there are still insufficiencies that evaluation of a successful project, there are still need to be resolved to achieve breakthroughs in very few studies about good criteria of the implementation and disbursement of ODA. enhancing the capacities of the above- mentioned. 5.3. Using Official Development Assistance to Capacity enhancement targets in most ODA enhance the capacity of implementing projects projects are detailed by principles and ratios In most ODA projects, strengthening which are decided by experts. The ratios focus capacity of implementation always plays a vital on the following fields: role in achieving projects’ targets. Today, except - The capacity of key individuals involved in infrastructural projects, the rate of spending for in the project, mostly referring to their enhancing capacity is always approximately 50% improved intellect and awareness as well as of total budget for the whole project or even their attitudes and behaviors. higher. It appears that this trend may continue in - The capacity of organizations related to or the next five to ten years. in charge of the projects, for example: recipient Strengthening capacity in ODA projects organizations and those supplying goods and always comprises two closely related issues: services for the project's activities. management capacity and technological - The working environment of individuals capacity (including both technological skills and organizations including their coordination and non-technological job skills). Other mechanisms and newly-established researchers have added other kinds of capacity, relationships in the project. such as interpersonal skills and the ability to work with agencies and social organizations. ODA projects have truly provided offices Thus, different types of capacities can be and organizations with projects which have divided into many ways based on different been improving their capacity in many fields. approaches and standards of classification. Still, there are some weaknesses: Enhancing capacity also consists of - Many of the capabilities that came about improvement in people’s awareness and or were improved by projects dissipate or building skills for all officers in the whole become redundant. system. To achieve this target, there should be a - In many organizations, new capabilities comprehensive environment in which did not complement each other and thus, could everybody has a chance to show their skills and not be promoted. their ability to apply them under pressure. This - Activities to improve capacity are not environment should also create favorable maintained regularly. Therefore, the outcome of conditions for the process of capacity transfer these activities is hard to predict. between individuals in the - Many of the improved elements prove to community/organizations. It will motivate be incompatible with current situations of everyone to improve themselves constantly recipient organizations and lead to wastage of based on essential skills they have been trained resources or even become a liability to the in directly or indirectly. organizations. Therefore, capacity should be seen from - In some cases, the improvements are not different aspects. Improving capacity is a highly compatible with the true demands of systematic process which takes a long time. organizations which have accepted and Only when the comprehensiveness and multi- benefited from the projects. dimensional nature of implementation of projects are guaranteed can this target be
9 N.X. Thien, N.V. Khoi / VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 The causes of the weaknesses listed above staff does not mean ignoring other elements, but include: concentrating on maximizing the usage of resources. Therefore, when carrying out projects, - Inaccurate research and evaluation processes organizations need to analyze the capabilities of of demands lead to wrong evaluations of demand the whole system to highlight the strongest and which can result inaccurate planning of projects weakest aspects. This is however less of a concern such as impossible targets and solutions. in today's projects. - Unsuitable project management - Choose the right factor to improve. For mechanisms not only in administration and different individuals and organizations, the need implementation but also the initial to improve capabilities can be different. On a conceptualization and reflection of the project. practical level, technical abilities, new Some staff are stated to be the best in their field technology and knowledge are necessary. On a for the respective projects as assigned by their strategic level, general ideas and strategic issues organizations. However, sponsors refuse to give and approaches are needed (in the form of the aid to these very staff, which prevents smooth way to approach and solve problems within the coordination. Still, many organizations providing scope of the responsibilities of those involved) goods and services are able to be employed and improve themselves in the progress of the project. - In designing projects, targets for When the project ends, these organizations work improvement need to be clear, suitable, detailed for other organizations, causing a decrease in and practical. Besides, the supervision and relative capability of the organization taking over evaluation of individual and organizations' the project. activities are also important to help management keep track of the results of the - Capacity improvement projects did not usage and implementation of the various come up with solutions to ensure compatible capabilities. conditions for the organizations subsequently taking over the projects in order to maintain and - Build and implement management develop capabilities produced after the end of improvement programs at the same time the project. (including administrative innovation) to enable officers to apply knowledge and skills that they - These projects only focus on improving a have been trained in. Besides, these officers single organization at a time. Recently, need to be aware of the importance of the sponsored aid based on programs seemed to project so that they themselves can see the have made better improvements and a more effectiveness of these measures. systematic way of solving problems. However, in order to improve and make use of its - Improving the ability of selected capacity, more improvements are needed with individuals is an important target of many ODA respect to the systems utilized in projects. projects in Vietnam. However, in recent years, these activities have not worked out as The exploitation and use of these capacities expected. In order to level up the effects of depends on many other factors especially the these projects, besides improving ability and environment, targets set and methods of administration, there needs to be a greater utilization. In order to level up the effectiveness of awareness on the part of individuals who wish to improvements in capacity of ODA projects, improve. This ought to be distinguished from organizations that take over the projects need to: other needs including a system's ability, the ability - Decide on the key element to focus on (with to evaluate technical, administrative and respect to the subject of improvement). Today, the communicative abilities as well as other elements ability of basic units is considered the center of including knowledge, skills, awareness and the project. According to the current situation in motivation of those related correctly. Vietnam, focusing on improving key units and
10 N.X. Thien, N.V. Khoi / VNU Journal of Science, Economics and Business 26, No. 5E (2010) 1-10 6. Conclusion References [1] Co-assessment on common budget supporting: The Japanese government is Vietnam’s Report on Vietnam. Ministry of Planning and number one bilateral donor. Its ODA has Investment. Hanoi, 2007. greatly contributed to Vietnamese economic [2] Economic Integration and ODA Allocation, development through poverty alleviation Department for multilateral Economic Cooperation, processes. In 2010, GDP per capita in Vietnam Ministry of Foreign Affairs, Hanoi, 2004. may reach 1,000 USD, taking Vietnam off the [3] Economic Information, Vietnam News, 2007 list of low-income countries. Yet, Vietnam is and early 2008. still at the bottom of poverty line and has to deal [4] National Strategy on Development, Hunger with many challenges in developing the economy Elimination and Poverty Alleviation, Ministry of due to the consequences of past wars. It is hoped Planning and Investment, 2003. that the Japanese government continues to provide [5] Seminar on Japan’s ODA Procedures in large amounts of ODA to Vietnam in the next Vietnam. Ministry of Planning and Investment, decade. Non-refundable aid could be decreased October 2007. [6] Sinh Viet Cao, Orientations to attracting and gradually but it should be substituted by increase using ODA for the 2006-2010, Economic and in other types of favorable loans for infrastructure Forecast Magazine. No 1- 2008. construction such as highways and the North- [7] Overview of ODA in Vietnam, National Center for South railway in Vietnam. Socio - Economic Information & Forecast (NCEIF), The increase in ODA from Japan will Ministry of Planning and Investment December strengthen trade relationships between the two 2003. countries and draw more Japanese FDI to [8] Websites of Vietnam’s Ministry of Planning and Vietnam as well as boost sustainable and long- Investment, and General Statistic Office. term, mutually beneficial strategic partnerships. Tác động của nguồn vốn hỗ trợ phát triển chính thức của Nhật Bản đối với sự phát triển kinh tế - xã hội Việt Nam PGS.TS. Nguyễn Xuân Thiên*, ThS. Nguyễn Việt Khôi Khoa Kinh tế và Kinh doanh Quốc tế, Trường Đại học Kinh tế, Đại học Quốc gia Hà Nội, 144 Xuân Thủy, Cầu Giấy, Hà Nội, Việt Nam Tóm tắt: Nguồn vốn hỗ trợ phát triển chính thức (ODA) đóng một vai trò quan trọng đối với sự phát triển kinh tế - xã hội của Việt Nam. Trong hai thập kỷ vừa qua, Nhật Bản là nước cung cấp nguồn vốn hỗ trợ phát triển chính thức lớn nhất cho Việt Nam. Bài viết này đề cập tới những nội dung chính như sau: Đánh giá chung về tình hình nguồn vốn hỗ trợ phát triển chính thức và nguồn vốn hỗ trợ phát triển chính thức của Nhật cho Việt Nam; Phân tích tác động của nguồn vốn hỗ trợ phát triển chính thức của Nhật đối với sự phát triển kinh tế - xã hội Việt Nam; Đề xuất khuyến nghị thu hút và nâng cao hiệu quả nguồn vốn hỗ trợ phát triển chính thức của Nhật tại Việt Nam.