Describing this as an “encouraging result”, Director of the External Economic Department under the Ministry of Planning and Investment, Ho Quang Minh highly appreciated the efforts made by localities and branches in the year of difficult economic conditions with public investments cut down.

In the interview given several days ago to Thoi bao Kinh te Vietnam, Minh said:

In previous years, only 40 percent of the yearly plan was disbursed in the first six months, while the disbursement rate was always higher in the second half of years. However, in 2011, more than 50 percent has been disbursed right in the first half. This is for the first time in the last many years we witnessed such a high disbursement rate of over 50 percent right in the first months of the year

I believe that the high disbursement rate is a “positive sign” which shows the great efforts made by relevant agencies and branches. We sat together to discuss how to solve problems right after any arose, which allowed to gradually settle the problems behind the slow disbursement rate.

However, I have to say that the disbursement rate is considered “high” if compared with the yearly plan, with the expected figure, but the rate is not high if compared with the actual capital demand. Vietnam remains the country which has the disbursement rate lower than the average ODA disbursement rate in the world. However, the figure, I think is really encouraging.

Are there any relations between the more rapid ODA disbursement rate and the public investment cut?

This is one of the useful measures. The government’s resolution No 11 says that Vietnam needs to cut down public investments, but it needs to intensify the use of ODA capital, simply because ODA capital is the existing money. While we lack money for investment, we should take full advantage of the existing money.

So, we need to intensify the use and push up the disbursement of ODA capital, considering this one of the special measures to be taken in the context where we have to cut down public investments.

What lessons can the rapid disbursement currently bring?

First of all, I think that the good cooperation among branches and agencies is very important. There are many issues which cannot be settled by one agency or branch, because these are inter-ministerial issues and need the cooperation of different ministries and branches and the cooperation with the donors.

Secondly, the qualification of the workforce is very important. I believe that it is necessary to strengthen the capacity of the management workforce. A lot of management boards still do not well understand the procedures, because our management boards are not professional.

Thirdly, we have applied some new procedures, though temporary, but could help speed up the disbursement time.

But if we intensify the use of ODA capital, the foreign debts of Vietnam will increase?

It is not true that the more ODA capital is disbursed, the biggest foreign debts we will incur. The disbursements are part of the committed loans, which means they have been counted on into Vietnam’s debts already. Therefore, the more slowly we disburse the biggest losses we incur. It would be better to speed up the disbursement in order to enjoy the advantages in the grade period. Rapid disbursement will help ease the interests and ease the burden on the public debts.

We recently had to negotiate for ODA in the context of increasing trade gap and payment balance deficit. Are there any changes in the conditions for the loans?

No. Donors all have projects listed in their long term strategies already. Japanese donors have a long list of projects for a long coming period, while the World Bank has projects for three years.

Source: TBKTVN