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Vietnam Environmental Technologies Export Market Plan

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Chapter13<br />

Sources of Financing<br />

Overseas development assistance from multilateral<br />

institutions, such as the World Bank and the Asian<br />

Development Bank, remains the largest source of<br />

financing for environmental initiatives in <strong>Vietnam</strong><br />

(Tables 13.1 and 13.3). While loans for environmentimprovement<br />

projects have been approved and signed,<br />

implementing the projects and disbursing funds rarely<br />

proceed on schedule.<br />

<strong>Vietnam</strong> has had a particularly poor track record of<br />

aid absorption for numerous reasons, including an<br />

entangled bureaucracy and extremely slow decisionmaking<br />

procedures. Local managers responsible for<br />

implementing projects must get approval for the smallest<br />

decisions along an entire chain of command. Major<br />

spending or disbursal decisions often must be approved<br />

by the local People’s Committee, numerous agencies<br />

affiliated with the project, parent ministries in Hanoi, and,<br />

occasionally, the prime minister.<br />

Chart 13.1 Pipeline Commitments in <strong>Vietnam</strong>, by<br />

Main Grant Donors (millions of dollars)<br />

0.3<br />

0.5<br />

0.7<br />

1.2<br />

4.0<br />

4.1<br />

BADC 4.1<br />

WB 5.7<br />

NORAD 7.0<br />

BMZ 9.2<br />

UNDP<br />

13.1<br />

UNDP/GEF<br />

18.9<br />

EU<br />

21.0<br />

JIKA<br />

DANIDA<br />

FAO<br />

MAE<br />

DFID<br />

Sida<br />

NETGOV<br />

DIDC<br />

42.3<br />

52.3<br />

$0 $10 $20 $30 $40 $50 $60<br />

The government has issued an inter-ministry decision<br />

(Decree 87/CP) on speeding up ODA disbursements and<br />

on decentralizing decision making. Implementation of<br />

this decree is a work in progress, however. Bidders on<br />

projects should expect delays in procurement schedules.<br />

13.1—U.S. Funding Sources<br />

The United States has not yet provided bilateral aid in<br />

the form of loans or grants to the environment sector.<br />

However, the Overseas Private Investment Corporation<br />

(OPIC) provided its first financial support to a U.S.<br />

investment project in <strong>Vietnam</strong> in December 1999, a $2.3<br />

million loan to V-Trac Infrastructure Company, the sole<br />

authorized dealer of Caterpillar equipment in <strong>Vietnam</strong>.<br />

OPIC is a federal agency that provides investment<br />

services to small and medium-sized companies in<br />

overseas markets.<br />

13.2—Key Sources of Overseas<br />

Development Assistance in <strong>Vietnam</strong><br />

Asian Development Bank<br />

23 Phan Chu Trinh<br />

Hanoi<br />

Tel: +84 (4) 733-0923<br />

Fax: +84 (4) 733-0925<br />

Web: www.adb.org<br />

E-mail: adbhanoi@netnam.org.vn<br />

Project officer: Mr. Le Dinh Thang<br />

United Nations Development Program<br />

27-29 Phan Boi Chau<br />

Hanoi<br />

Tel: +84 (4) 942-1495<br />

Fax: +84 (4) 825-9267<br />

Resident representative: Edouard Wattez<br />

Note: Full names of donor organizations are given in the<br />

abbreviation list on page viii. Dollar figures have been rounded.<br />

Source: U.N. Development Program.<br />

46 U.S. Department of Commerce, International Trade Administration

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