One way to win confidence of donors

The reporter:  You have mentioned a second Japanese ODA for Vietnam this year. So, could you elaborate on that?

- Mitsuo Sakaba: In March this year, Japan signed a commitment for four projects including the subway in Hanoi and road development in Haiphong. We are now studying a new terminal project at Noi Bai International Airport, and as usual we study details of a project before we announce finance for it. Each donor has its own approach. Some donors announce their amounts before picking up projects. The Japanese approach is different. We study projects and calculate amounts for these projects before making the announcement.

Next month, we are going to announce a second aid package for Vietnam this year, and our focus is on power generation, rural roads, finance and the environment. I cannot tell you the detail (of the package). Maybe, it is worth several hundred millions of U.S. dollars.

How do you assess the effectiveness in the use of ODA in Vietnam, especially after the corruption case involving Pacific Consultants International (PCI)?

- As you may know, we have discussed with the Vietnamese Government stricter measures to control the process of bidding evaluation, auditing and accounting check. We will invite a third party to do the bidding evaluation to ensure transparency in order to avoid the repeat of cases like the PCI. Therefore, we hope our efforts will contribute to better implementation of ODA projects in Vietnam.

It is said that slow implementation of ODA projects in Vietnam is a major concern. Have you got any suggestion for Vietnam to speed up the pace?

- Japan and other donors wonder why implementation procedures are so slow, as money is already there but projects are not off the ground. Land clearance is a very time consuming and complicated process. So, there should have appropriate ways in place to accelerate the implementation. Who pays the additional costs for one more year of a project which is scheduled to be carried out within three years? This is a big problem, not in disbursement but in additional costs. So, implementation should be within the planned period,… and (it is urgent to) make procedures simple, clear and transparent.

What will Vietnam need to do to win more confidence of international donors?

- International donors pay special attention to Vietnam’s development as Vietnam being less developed than the other ASEAN members has a lot of potential for further growth. Many donors point out that there are good projects for supporting, particularly those projects that can contribute to sustainable development of Vietnam. As Vietnam is the second largest country in Southeast Asia after Indonesia (in terms of population), its economic growth can contribute much to the development of the whole region.

Of course, there remain problems to be solved, not only in Vietnam but also in other countries. We have discussed a lot about corruption, and many donors have mentioned greater contribution of the society including the media to the fight against corruption. Therefore, the Vietnamese Government’s determination against corruption is one way to win the confidence of donors. Donors do not want their support to benefit a limited group of people but more people, especially the poor and vulnerable people. So, the right participation of the Vietnamese people in the process of development and their benefits are the key for donors to give more attention to Vietnam.

Vietnam and Japan are exerting efforts to build stronger ties, especially in investment and trade. What is the outlook for Japanese investment in this country?

- Japanese businesses have invested not only in Vietnam but also in other countries. It is the Vietnamese Government and people who can attract more investors by showing them the country’s great potential for future development because investors want to see more chance to make profits. Everyone agrees Vietnam has high potential for development but potential should be turned into reality. Many Japanese businesses are aware of complicated administrative procedures, infrastructure deficiencies and other problems. So, we should resolve these problems, one by one to improve the investment environment so that more investors will come.