Mobilising Investment for Development: Role of ODA the 1993-2003 Experience in Vietnam

Thuc Duc Le, Thi Thanh Ha Nguyen, Thu Hang Nguyen and Thi Hanh Tran
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Thuc Duc Le: Vietnam Institute of Economics
Thi Thanh Ha Nguyen: Vietnam Institute of Economics
Thu Hang Nguyen: Vietnam Institute of Economics
Thi Hanh Tran: Central Institute for Economic Management

No 2004/6, OECD Working Papers on International Investment from OECD Publishing

Abstract: The Vietnamese economy was in the doldrums in the 1980s and until a certain progress had been made in the context of Doi Moi there was little incentive for businesses to invest. The following reasons are commonly given for the sluggish economic activity: a lack of appropriate infrastructure (causing market disconnectedness even within the country); weak links to the world market; a shortage of skilled labour and managerial capacity; and an inefficient or business unfriendly public administration. ODA to Vietnam was allocated in such a way as to remedy these obstacles and the donors’ well designed strategies are seen as a major factor behind the success of ODA. National ownership, an important feature of ODA programmes, has mostly been strong in ODA to Vietnam. Most of the activities of the past were closely aligned with the Vietnamese government’s development priorities. It should nevertheless be recognised that some ODA projects have aroused little enthusiasm among public ...

Date: 2004-12-01
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