Thời gian: 12/12/2014 23:55

EU launches new EUR400 million development co-operation programme in Vietnam

EU launches new EUR400 million development co-operation programme in Vietnam

The European Union (EU) on December 4 officially announced its new Multi-annual Indicative Programme (MIP) for Vietnam for the 2014-2020 period a total amount of EUR400 million.

The non-refundable aid package for the next seven years will mainly support Vietnam's socio-economic development by developing the energy sector (accounting for 85% of the total) and by strengthening governance and the legal system (15% of the total).

Speaking to the press in Hanoi this morning, Director for Asia, Central Asia, Middle East/Gulf and Pacific at the EuropeAid Office in Brussels, Pierre Amilhat, said that the MIP follows the formal announcement by the EU and the Vietnamese Government last October, in connection with Prime Minister Nguyen Tan Dung’s visit to Brussels.

The EU official praised Vietnam’s achievements in alleviating poverty and raising the standard of living of its population. He also confirmed the EU continues to strengthen support of the country's efforts to tackle the development challenges.

The EU has affirmed the importance of its bilateral co-operation with Vietnam, underlying that its bilateral aid package has increased by more than 30% as compared to the previous seven-year period.

Under the MIP 2014-2020, a number of new projects in the fields of sustainable energy, governance and the rule of law will be designed and launched over the coming years.

In the energy sector, the EU support will contribute to a more sustainable energy sector by promoting efficient, clean and renewable energy.

The plan targets the remaining 3% of Vietnam’s population living without electricity and commits to create access to electricity for 64,577 households by 2020. In addition, 568,000 rural households will utilise electricity generated from renewable sources by 2020.

Under the support to governance and rule of law, the EU will promote democracy, strengthen the legal and judicial systems and support creating an open business environment. The measures will be achieved by increasing access to justice, particularly of women, the poor and vulnerable groups; increase the accountability, transparency and cost-effectiveness of public service delivery; and ensuring citizens' effective participation in public governance.

In addition to the launch of the MIP, Pierre Amilhat also announced a new agreement to support the health sector in Vietnam will be signed between the EU official and Vietnam’s Minister of Finance Dinh Tien Dung, following the successful achievements of on-going support.

The new EU Health Sector Policy Support Programme – 2 (EU-HSPSP-2) will support Vietnam's health sector reforms and the implementation of plans and projects to roll-out these reforms over the 2015-2017 term, with a total value of EUR114 million.

The EU, as a whole, is currently the largest grant donor to Vietnam and its second largest trading partner, with an EU-Vietnam Free Trade Agreement (FTA) expected to be finalised by 2015 to further expand the economic ties.