Mr Trong made the appeal at a mid-term consultative group (CG) meeting for Vietnam held in the tourist resort city of Sapa in the northern mountainous province of Lao Cai on June 6. Government officials, foreign donors and leaders from 14 northern mountainous provinces attended the meeting.

Addressing the event, Mr Trong assured donors that Vietnam will do its utmost to effectively use aid resources, including official development assistance (ODA), and combat negatives, particularly corruption, that arise during the implementation of foreign-funded development projects.

According to the Deputy PM, over the past years, donors have poured aid into agricultural production, poverty reduction, infrastructure construction and healthcare projects in the north-western region as well as in other northern midland and mountainous regions.

However, Mr Trong noted that there is a widening gap between the north-western region and others due to its poor infrastructure and low development levels. He called on donors to continue to pour more aid into the region through different channels to help it develop the economy and escape poverty.

In his report, Minister of Planning and Investment Vo Hong Phuc thanked donors for providing both consultancy and development aid to Vietnam despite global aid reductions.

He affirmed that ODA plays an important role in socio-economic development in Vietnam. Over the past 17 months, the ODA disbursement has progressed thanks to efforts made by both sides in ironing out snags and accelerating administrative reforms.

He noted that more than a year after joining the World Trade Organisation, Vietnam fulfilled major development targets for 2007. Despite the global economic slowdown during the past five months, Vietnam has attracted more than US$15 billion worth of foreign direct investment, showing foreign investors’ trust in the country’s long-term and sustainable development.

However, James Adams, Vice President of the World Bank, said the Vietnamese economy is facing many challenges, including high inflation and trade deficit. He said the WB will work with the Government and other donors to help Vietnam overcome these challenges.