Donors urge quality public investment

Donors called on Vietnam to restructure public investment to foster quality growth at a workshop in Hanoi on October 4.

While examining the Ministry of Planning and Investment (MPI)’s five-year socio-economic development draft, most donors supported the country’s projected annual growth rate of 6.5 percent in the next five years instead of 7 percent. They said the reasonable rate would enable Vietnam to improve social protection policies, increase basic services for the poor and the most vulnerable groups, and create more jobs.

Eamonn Murphy, the UN Resident Coordinator in Vietnam, said the country should pay attention to equity issues as economic growth alone cannot ensure human development.

Rie Vejs Kjeldgaard, ILO representative in Vietnam, applauded issue of labour being pushed to the forefront aimed at reducing the unemployment rate amongst workers in urban areas to below 4 percent, creating jobs for over 8 million in five years. However, she said more detailed planning needs to be considered.

MPI Deputy Minister Cao Viet Sinh said the mindset related to public investment needs to be redirected toward decreasing investment and mobilizing non-budgetary funds from other economic constituents to develop the economy.

According to MPI Minister Bui Quang Vinh, public investment has decreased from roughly 42 percent during 2006-2010 to 33 percent in 2011. At the same time, he said there has been too much reliance on the national budget, which increased risks to the economy over a long-term period.

The draft also focuses on curbing inflation, stabilizing the macro-economy, maintaining reasonable growth associated with economic restructuring, and facilitating sustainable development by 2013.

The draft will receive further comments from international donors before being finalized and submitted to the National Assembly by the end of October. – VOV

Tags: Vietnam public investment