Slow disbursement hinders ODA transport projects

As the National Assembly debates Vietnam’s 2016-2020 economic restructuring plan, optimism is running high. Aaron Batten, country economist for Asian Development Bank’s Vietnam Resident Mission, spoke with VIR’s Thanh Tung about necessary solutions to achieve the plan’s high hopes. Vietnam’s National Assembly is debating the country’s national economic restructuring plan for the 2016-2020 period. What will the core of the plan be? Deepening Vietnam’s structural reform agenda is essential to its continued long-term development. For Vietnam to follow the rapid development path of economies such as South Korea, Taiwan, and China, it will need to grow at rates averaging around 8-9 per cent per annum for the next two decades. To achieve this in the face of significant global challenges, Vietnam can no longer afford to have a large share of its economic activity dependent on state enterprises – or to have its financial sector hobbled by a large stock of unresolved, non-performing loans. State-owned enterprises (SOEs) continue to drag down growth and innovation in many areas of the economy, such as agriculture, food and drink processing, construction, and finance. Not only do state firms soak up scarce capital, but by receiving preferential treatment they distort the local market and prevent more efficient, dynamic private sector firms from growing and creating employment. As a recent Financial Times survey showed, of the top 100 domestic firms in Vietnam by size, 97 are SOEs. The most important action to speed up reform is to deepen the equitisation of SOEs, including banks. Reforms…... [read more]

The Hanoitimes - Some foreign economic and financial organisations have maintained an optimistic outlook for Vietnam’s economy in 2016. Despite low economic growth than forecast in Q1, 2016, the Vietnamese economy is outperforming other countries in the region, according to the ANZ Bank. The bank expects Vietnam’s GDP to rise 6.9% in 2016 and 6.5% in 2017 despite agricultural recession. In Q1, 2016, Viet Nam’s GDP grew 5.46%, lower than ANZ’s previous forecast of 6.2%. Better performance of construction and service are unable to offset industrial recession. HSBC said the country’s manufacturing sector grew by 10.6 percent last year and contributed 1.6 percentage points to GDP growth of 6.7 percent. The industry will remain stable and develop by 10.7 percent in 2016. However, the bank revised their GDP forecast down to 6.3 percent for this year and 6.6 percent for 2017, it said on April 7. It elaborated that the actual GDP expansion of 5.6 percent in the first quarter of 2016 is slower than the bank’s previous prediction. Meanwhile, the recently proposed administrative tightening measures will curb credit growth at certain levels and could lead to less investment. Despite a possible slower growth, Vietnam will still have high economic growth. The prudence in policy making and priority given to macro-economic stabilisation will result in positive outcomes and ensure sustainable economic recovery, HSBC said. Sharing the same view, Aaron Batten, the country economist at the Asian Development Bank (ADB)’s Vietnam Resident Mission, said from many angles, the Vietnamese Government is…... [read more]

Some foreign economic and financial organisations have maintained an optimistic outlook for Vietnam’s economy in 2016, in spite of the recent slower than expected GDP expansion. HSBC said the country’s manufacturing sector grew by 10.6 percent last year and contributed 1.6 percentage points to GDP growth of 6.7 percent. The industry will remain stable and develop by 10.7 percent in 2016. However, the bank revised their GDP forecast down to 6.3 percent for this year and 6.6 percent for 2017, it said on April 7. It elaborated that the actual GDP expansion of 5.6 percent in the first quarter of 2016 is slower than the bank’s previous prediction. Meanwhile, the recently proposed administrative tightening measures will curb credit growth at certain levels and could lead to less investment. Despite a possible slower growth, Vietnam will still have high economic growth. The prudence in policy making and priority given to macro-economic stabilisation will result in positive outcomes and ensure sustainable economic recovery, HSBC said. Sharing the same view, Aaron Batten, the country economist at the Asian Development Bank (ADB)’s Vietnam Resident Mission, said from many angles, the Vietnamese Government is going the right way. Foreign investment into the country has hit a record high and will be still steady in the next few years. Retail sales have risen, along with businesses’ increasing optimism. According to the ADB’s data, the surge of over 55 percent in automobile sales in 2015 is evidence for a return in consumer confidence. It also made Vietnam’s…... [read more]

Some foreign economic and financial organisations have maintained an optimistic outlook for Vietnam’s economy in 2016, in spite of the recent slower than expected GDP expansion. HSBC said the country’s manufacturing sector grew by 10.6 percent last year and contributed 1.6 percentage points to GDP growth of 6.7 percent. The industry will remain stable and develop by 10.7 percent in 2016. However, the bank revised their GDP forecast down to 6.3 percent for this year and 6.6 percent for 2017, it said on April 7. It elaborated that the actual GDP expansion of 5.6 percent in the first quarter of 2016 is slower than the bank’s previous prediction. Meanwhile, the recently proposed administrative tightening measures will curb credit growth at certain levels and could lead to less investment. Despite a possible slower growth, Vietnam will still have high economic growth. The prudence in policy making and priority given to macro-economic stabilisation will result in positive outcomes and ensure sustainable economic recovery, HSBC said. Sharing the same view, Aaron Batten, the country economist at the Asian Development Bank (ADB)’s Vietnam Resident Mission, said from many angles, the Vietnamese Government is going the right way. Foreign investment into the country has hit a record high and will be still steady in the next few years. Retail sales have risen, along with businesses’ increasing optimism. According to the ADB’s data, the surge of over 55 percent in automobile sales in 2015 is evidence for a return in consumer confidence. It also made Vietnam’s…... [read more]

Electricity has fueled Vietnam's dramatic economic expansion over the past decade, helping slash the number of people living in poverty from 58% in 1993 to 13% in 2009. The growing demand for power has put a strain on existing generating capacity, however, resulting in power shortages and unstable supply during the dry season. "Vietnam's power consumption has been growing 15% a year over the past decade, and will continue rising at a double-digit pace for the foreseeable future. It desperately needs more electricity, and the additional power supply will support economic and social development in the Mekong delta", said Anthony Jude, Director of ADB's Energy Division for Southeast Asia. Following a press release issued by the Vietnam Resident Mission ADB on November 24, the O Mon IV plant will provide a more reliable supply of power to the Mekong delta, support expanded industrial activity, spur new livelihood opportunities, and reduce dependence on hydroelectricity tapped from other regions. It is aligned with nation's power sector development plan, which aims to more than triple energy capacity from 18,500 MW in 2010 to 60,000 MW by 2020. The new combined cycle gas turbine plant is one of four being developed at the O Mon thermal power complex in Can Tho city, about 250 kilometers south of Ho Chi Minh City. Once completed, it will save approximately 600,000 tons of carbon dioxide emissions a year compared to coal-based alternatives, possibly qualifying the facility for carbon credits. O Mon IV, which is due for completion…... [read more]

CPV: Asian Development Bank (ADB) President Haruhiko Kuroda will travel to Vietnam from 28 February to 2 March as part of the final preparations for ADB's upcoming annual meeting, said the ADB Vietnam Resident Mission on February 25. About 3,000 participants, including heads of state, finance ministers, central bank governors and representatives from the private sector, academia, media and civil society are expected to attend the 44th annual meeting of ADB's Board of Governors from May 3-6. This is the first time the event is being hosted by Vietnam and will provide the country with an opportunity to showcase its rapid socioeconomic development with the support of development partners including ADB, and its recent progression to Middle Income Country status. During the event, participants will discuss pressing issues facing the region including policy challenges for food security, middle income countries, changing growth trends and capital flows to Asia, infrastructure development, environmentally sustainable development, and climate change. It is a good opportunity for participants to hold formal and informal consultations that can help shape economic, financial and social policies and programs in Asia and the Pacific. In Hanoi, President Kuroda will tour the National Convention Center, and other venues where Annual Meeting events will take place. He is also planned to meet Party Chief and NA Chairman Nguyen Phu Trong, Prime Minister Nguyen Tan Dung, and other officials, before visiting ADB project sites in Dac Lak province. Vietnam joined ADB in 1966 as one of the founding members, and over the…... [read more]

The Hanoitimes - The Asian Development Bank (ADB) and the Nordic Development Fund (NDF) will provide US $2.5 million for Vietnam to draw up and implement action plans to deal with the climate change.The ADB Vietnam Resident Mission made the announcement in Hanoi. Accordingly, the project is due to begin in May 2011 and complete in March 2013. Ho Chí Minh city, the central city of Da Nang, the northern province of Thanh Hóa, the Ministry of Transport, and the Ministry of Industry and Trade will be direct beneficiaries of that non-refundable aid, administered by the ADB. Meanwhile, the Vietnamese Government will supply US $250,000 as counterpart finance for the project, making it worth totally US $2.75 million. It has been reported that climate change, rising temperature and sea level rise would threaten the Mekong and Red river delta regions, as well as big cities like Ho Chí Minh and Da Nang. BTP... [read more]

CPV: The Asian Development Bank (ADB) and the Nordic Development Fund (NDF) will help Vietnam draw up and implement detailed climate change action plans for key cities and government departments, said the ADB Vietnam Resident Mission today February 9. A technical assistance grant of 2.5 million USD from NDF, administered by ADB, will be used to help Ho Chi Minh and Da Nang cities, the Ministry of Transport, the Ministry of Industry and Trade, and Thanh Hoa province plan and implement effective climate change response measures. The assistance will support Vietnam's National Target Program for building a more climate-resilient economy producing less greenhouse gas. "This project will help increase the capacity of the target cities, ministries and province to respond effectively to the impacts of climate change", said Mr Ayumi Konishi, ADB Country Director for Vietnam. The project will identify the risks to economic sectors and communities from climate change, with mitigation and adaptation options identified and integrated into comprehensive action plans. The capacity of key agencies in the public and private sectors will be strengthened, and climate change community awareness campaigns will be carried out through the media. It will also support the design of greenhouse gas emission reduction projects, along with estimates of emissions under different growth scenarios, and the creation of an emissions database which can be regularly updated. Vietnam will provide 250,000 USD as counterpart finance for a total investment cost. The Ministry of Industry and Trade is the executing agency for the project which is…... [read more]

VGP - The Asian Development Bank (ADB) and the Nordic Development Fund (NDF) will provide US $2.5 million for Việt Nam to draw up and implement action plans to deal with the climate change. Accordingly, the project is due to begin in May 2011 and complete in March 2013. Hồ Chí Minh city, the central city of Đà Nẵng, the northern province of Thanh Hóa, the Ministry of Transport, and the Ministry of Industry and Trade will be direct beneficiaries of that non-refundable aid, administered by the ADB. Meanwhile, the Vietnamese Government will supply US $250,000 as counterpart finance for the project, making it worth totally US $2.75 million. It has been reported that climate change, rising temperature and sea level rise would threaten the Mekong and Red river delta regions, as well as big cities like Hồ Chí Minh and Đà Nẵng./. By Kim Loan... [read more]

To overcome adverse impacts of the crisis and cope with challenges of poverty reduction, Vietnam needs to press ahead with policy reforms that foster socially inclusive and environmentally sustainable economic growth, Bahodir Ganiev, Country Economist for ADB's Vietnam Resident Mission said. This is ADB's sixth loan for Vietnam, which will support a wide range of policy reforms in areas of business development, social affairs, natural resource management and government, the Vietnam News Agency quoted the ADB official as saying. (VNA)... [read more]




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