GEARING DEVELOPMENT COOPERATION TOWARDS THE MDGs: EFFECTIVENESS AND RESULTS 5-6 May 2011 Bamako, Mali Panel 1 Getting and demonstrating results from development cooperation Cao Manh Cuong, DDG FERD MPI of Viet Nam VIET NAMS 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. OVERVIEW OF DEVELOPMENT COOPERATION IN VIET NAM 1. Viet Nam has 51 Development Partners (28 bi-lateral and 23 multilateral 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. 9000.00

8000.00 7000.00 6000.00 Commitment 5000.00 Agreement 4000.00 Disbursement

3000.00 2000.00 1000.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 KEY GUIDING PRINCPLES FOR EMHANCING AID EFFECTIVENESS 1. Ensure National Ownership 2. Use ODA Selectively 3. Maximize the effectiveness and widespread impacts of ODA

4. Ensure Broad Participation of Beneficiaries 5. Build Strong and Reliable Partnerships with Donor organizations POLICIES OF DEVELOPMENT PARTNER IN VIETNAM 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. 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) A LOT OF PROGRESS BUT CONSTRAINTS STILL REMAINS ON AID EFFECTVINESS AGENDA 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. Thank you for Your Attention 11

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