Vietnam Environmental Technologies Export Market Plan
Vietnam Environmental Technologies Export Market Plan
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