The UK has pledged to increase aid to Vietnam during the next five years.
The signing ceremony
The UK’s visiting Minister of State for International Development Alan Duncan MP and Minister of Planning and Investment Vo Hong Phuc signed an amendment to the Development Partnership Arrangement (DPA) between the two governments in Hanoi on May 26.
Under the agreement, the UK has committed itself to providing up to £70 million (around USD114 million) in aid to Vietnam until 2015.
The funding aims to support Vietnam in meeting the Millennium Development Goals; achieving strong growth that is inclusive, low-carbon and led by the private sector, along with strengthening efforts to tackle corruption and enhance accountability.
“I am delighted to be making my second visit to Vietnam within a year, and very pleased to see for myself again a vibrant and emerging Vietnam,” said Duncan.
“Since my last visit, the UK and Vietnam signed a Strategic Partnership, taking our relationship to the highest level. Today, I am pleased to have agreed the next five years of our development partnership. The aid commitment enshrined in the DPA Amendment today, together with our new role as lead donor on anti-corruption in Vietnam, shows the great importance that the UK attaches to the bilateral relationship with Vietnam.”
During his four-day visit, Duncan spent two days reviewing two UK-supported programmes, including the Semi-washed Robusta Coffee Station in Dak Lak Province, under the Making Markets Work for the Poor programme, and a pilot project to grow vetiver grass to prevent seashore erosion in Phu Yen Province, under the Vietnam Innovation Day.
The UK and Vietnam entered into a ten year DPA in 2006. By 2011, The UK, through the Department for International Development (DFID), has granted over £380 million (USD619 million) in aid to Vietnam.
In addition, since 2006 nearly £19 million (USD30.95 million) in debt relief has been granted to Vietnam through the Multilateral Debt Relief Initiative for humanitarian efforts.
In March this year, the UK confirmed that its aid to Vietnam would end by 2016, marking the conclusion of the DPA.
Photo: Minister of State Alan Duncan MP and Minister of Planning and Investment Vo Hong Phuc at the signing ceremony.