Deputy Minister of Finance Vo Thanh Hung met with Mr. Shantanu Chakraborty, the Country Director of Phat Bank development (ADB) in Vietnam, on November 9 at the Ministry of Finance's offices, as well as experts from both sides and representatives of the unit's commanders.
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Deputy Minister Vo Thanh Hung spoke at the reception
Deputy Minister Vo Thanh Hung opened the meeting by welcoming Mr. Shantanu Chakraborty, the ADB Country Director in Vietnam, and the delegation's business visit and work at the Ministry of Finance on behalf of the Leaders of the Ministry of Finance. The Deputy Minister conveyed his heartfelt gratitude for the Asian Development Bank's (ADB) proactive support and collaboration with the Vietnamese government and the Ministry of Finance for nearly 30 years. The Deputy Minister looks forward to receiving further support from ADB in the near future. However, Deputy Minister Vo Thanh Hung claims that over the last one to two years, Vietnam and ADB's debt financing efforts have slowed down. Due to a number of fundamental factors, this is the overall tendency of ODA loan activity.
Complex variations have recently been seen in the worldwide financial market; developed nations constantly modify interest rates to prevent inflation. In the meanwhile, Vietnam is almost at the point where it may access floating cash that is emerging from international organizations, which implies that it must access quite high interest rates.
Subjectively, because of variations in ADB and Vietnam's policies and laws, donor rules must be complied with by Vietnamese legislation before projects may use funds. Compared to projects utilizing domestic resources, ODA is far more complex; ability to carry out projects is not really great in certain places; the negotiating and approval procedure of the investment plans continue to be time-consuming and complex.
Mr. Shantanu Chakraborty - ADB Country Director in Vietnam (middle) spoke at the reception
The ADB Country Director for Vietnam, Mr. Shantanu Chakraborty, congratulated the Vietnamese government on its numerous successes in achieving efficient macroeconomic control and achieving particular outcomes in the context of the global financial and economic arena during the meeting. Recognizing that Mr. Shantanu Chakraborty is superfluous and that Deputy Minister Vo Thanh Hung shares information on the Ministry of Finance and ADB's financial activities It is true that ADB's lending interest rates are set on a periodic basis and are not competitive. In order to manage inflation and lower interest rates on loans, it is hoped that developed economies will lower interest rates. In order to achieve mutual benefit, ADB is prepared to work in concert with the Ministry of Finance's specialized agencies to identify solutions for blockages. Prior to the announcement that Mr. Masatsugu Asakawa, the President of the Asia-Pacific Development Bank (AMDB), will visit Vietnam in March 2024 to commemorate the 30th anniversary of the establishment of diplomatic relations between Vietnam and the ADB, representatives of the Ministry of Finance and the ADB stated that they would do everything to sign the Loan Agreement for the CRIEM II Project before the ADB President's visit, which aimed to highlight the two sides' strong cooperate relationship.
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Meeting overview
Deputy Minister Vo Thanh Hung, however, states that the two provinces of Quang Tri and Phu Yen are now finishing up the steps to modify their investment policies in order to sign the preliminary agreement. The minute of negotiation will be signed by the Ministry of Finance and ADB once the two provinces have finished this process.
Vietnam will prioritize the implementation of large-scale investment projects in the long run. Vietnam gives priority to using indigenous money for small-scale initiatives. With low starting scores, high infrastructure investment needs, and obligations to combat climate change while still pursuing economic development, Vietnam has enormous capital needs that cannot be met by domestic resources alone. External resources must be mobilized. In addition, Vietnam is hoping that the Asian Development Bank to improve staff capacity for specialized agencies.
Translator: Thúy Nga
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