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.