VINACHEM

HA NOI — Sean Doyle, head of the EU delegation to Viet Nam, yesterday announced the EU would allocate 13 million euros (US$16.5 million) to back Viet Nam's Socio Economic Development Plan (SEDP 2006-10).

The money is part of a 44 million euro grant agreement signed between the EU and Viet Nam last year.

Within three years, the funds will be distributed to Viet Nam through the joint-donor Poverty Reduction Support Credit (PRSC) mechanism, which is the general budget support mechanism used by all donors in Viet Nam.

Disbursement of the 44 -million-euro grant depends on the progress of policy reform, as well as a firm commitment from the Government to improve public financial management.

This year, the disbursement of 13 million euros takes account of appropriate policy reform in a number of key areas, such as enhancing the financial management of State-owned enterprises, formulating an education development strategy and a comprehensive anti-corruption strategy, elaborating a public debt management law, and formulating a national target programme on adaptation to climate change.

(Source: VNS)