EU Pledges $400M ODA to Vietnam by 2020, Focusing on Energy: Ambassador

The European Union (EU) will finance Vietnam approximate $400 million worth of official development assistance (ODA) for development in a range of sectors, mostly energy from now until 2020, said newly-accredited Ambassador to Vietnam Bruno Angelet. Of the total, $350 million would be shifted to energy and electrification in rural and remote areas to contribute to property reduction process in Vietnam, Mr. Angelet said in an interview with the state-run Thoi Bao Kinh Te Vietnam newspaper. Vietnam carried out rural electrification in 1998-2013 with the aim of narrowing the gap between regions and developing the economy in rural areas and islands. The process cost VND49.5 trillion ($2.21 billion). The program expanded electricity coverage to almost all communes nationwide, bringing electricity to 97% of households in rural areas. The move helped increase index of industrial production by 6.6 times, processing industry by 3.5 times and per capita income by eight times. Together with the EU, the World Bank is another big donor to Vietnam’s rural electrification process. (Thoi Bao Kinh Te Vietnam – Vietnam Economic Times Oct 30 p3, Tienphong.vn)