According to the latest available data and information, annual ODA disbursements to Viet Nam could reach as high as US$1.6 billion in 2003, up some 14% from US$1.4 billion in 2002. Available data for the first eleven months of 2003 indicate that disbursements have already reached close to US$1.5 billion.

As a result, disbursements for 2003 are likely to recover to their record high achieved in 2000. Recorded disbursements for this year are up partly due to some quick disbursing funds for the Comprehensive Poverty Reduction and Growth Strategy originally scheduled for 2002 slipping into early 2003. At the same time, ODA project disbursements also continue to recover following their decline in 2001.

The decrease in 2001 was the first decline since 1993. Disbursements fell some 16% in that year following eight years of consecutive increases. The decrease was due largely to the completion of a number of Japanese financed projects and programmes. These included the Phu My, Pha Lai, and Ham Thuan Da Mi power plants, as well as the Miyazawa Initiative which was in support of private sector development, and SOE and trade reform.