High disbursement shows positive economic signs

03:29 PM @ Wednesday - 01 September, 2010
A positive trend in economic development is reflected in the high disbursement of investment and development project funds.

Statistics show that an estimated 92.1 trillion VND (roughly 4.7billion USD) was disbursed from the State budget for developmentprojects in the first eight months of the year, making up almost 74percent of the annual plan.

Disbursement of Official DevelopmentAssistance (ODA) commitments reached over 1.8 billion USD, or 74.5percent of the annual target and 13.5 percent increase year on year.Foreign Direct Investment (FDI) saw up to 7.25 billion USD disbursed,representing an increase of 3.6 percent over the same period last year.

The Ministry of Planning and Investment (MPI)forecast that development investment this year is expected to reach 800trillion VND, accounting for 41.37 percent of gross domestic product andrepresenting a growth of 12.9 percent year on year.

Once the disbursement is reached, it would be the second consecutiveyear Vietnam has surpassed the annual target for developmentinvestment, said MPI.

The trend was of primaryimportance for Vietnam since the country is largely dependent oninvestment for economic growth, the ministry explained.

The figures have shown the great efforts made by the Government,ministries, industries and local administrations to mobilise differentfinancial sources for development amid post-crisis economic difficultiesworldwide.

The figures were evidence of investors’ and partners’ confidence in Vietnam’s potential for growth, MPI said.

Problems, however, remain with cumbersome administrative procedures and limited management competence.

Experts have called on responsible agencies to move promptly inreviewing and adjusting relevant policies and streamliningadministrative procedures in an effort to increase the country’scapacity to absorb investment.

The Director of theNational Centre for Socio-Economic Information and Forecast, Le DinhAn, said measures to lure FDI should be associated with economicrestructuring and geared to concrete industries and products.

Such an orientation should be also applied to ODA fundraising, he added.

National Assembly Vice Chairman Nguyen Duc Kien proposed an earlyorientation for mobilising and using ODA at a workshop in July.

He also called for relevant agencies to make objective evaluations ofnational debts in support of mobilising financial sources for economicdevelopment./.

(Source: http://en.vietnamplus.vn)


LinkedInPinterest

OTHERS

More News