Donors pledge US$2.4b in aid to Vietnam

Donors pledge US$2.4b in aid to Vietnam

HANOI (AP): International donors have pledged US$2.4 billion
in development aid to Vietnam, praising the government's efforts
in pursuing economic reforms.

Last year, the aid pledges totaled $2.1 billion and donors
promised an additional $700 million if the country accelerated
the pace of reforms.

This year, however, international donors pledged an
unconditional lump sum, saying they are confident that Hanoi is
committed to carrying out the reforms the additional money would
finance, World Bank representative Andrew Steer said Friday.

"Certainly there's much greater confidence on the part of the
international community that Vietnam is moving forward with the
reform agenda," Steer said at the end of the two-day meeting of
donors.

But Vietnam's impressive achievements "must not blind us to
the very large task that remains," he said.

This year saw Vietnam sign a landmark bilateral trade
agreement with the U.S., open a new stock market and pass a law
encouraging private business.

Vietnam understands the need to "create a liberal business and
production climate -transparent and predictable," Minister of
Planning and Investment Tran Xuan Gia said during his opening
address.

A breakdown of donor countries was not released. In the past,
major donors have included Japan and many European countries,
especially Scandinavian nations. The U.S. has never offered
development assistance through this route, saying it provides aid
in other ways.

Vietnam is finally emerging from an economic slump related to
the 1997-98 Asian financial crisis and several natural disasters.

It has recorded growth of nearly 7 percent this year compared
to 4.8 percent in 1999, its lowest level in the 1990s.