Hanoi (VNA) – The effectiveness of foreign aid in Vietnam ’s northern mountainous region and its development are among topics discussed at the mid-term Consultative Group (CG) meeting convened on June 5 and 6 in the country.

Since 1993, the international community has committed a total of 1.35 billion USD in official development assistance (ODA) to northern midland and mountainous region, where nearly 27 percent of population are struggling against poverty, the highest rate in the country.

The majority of the committed fund has been used for agriculture and rural development in the Government effort to achieve the target of reducing the percentage of poor people to 23.4 percent this year.

By the end of May, almost 460 million USD, or 34 percent of the ODA committed to the region, has been pumped into the field.

In addition to agriculture and rural development, foreign donors have also provided financial assistance for promoting energy and industry, especially hydro-electricity generation and minerals exploitation to tap advantages of the northern mountainous provinces.

So far, the region has received 325 million USD, which accounted for 24 percent of total ODA capital, for the energy and industrial sectors.

The international community has also allocated 9-22 percent of their committed ODA to transport and communications, post and telecommunications, health care, education and training, water supply and environmental sanitation in the area.

According to the Ministry of Planning and Investment, which oversees ODA flow, ODA-funded projects have contributed remarkably to improving living conditions of local people in midland and mountainous region.

The ministry plans to help provinces in the region complete institutions to manage and use this source of capital, improve their capacity in preparing, appraising and implementing projects, and outline a mid-term strategy for the management of public investment, including ODA.

The midland and northern mountainous region encompasses Cao Bang, Lang Son, Bac Kan , Tuyen Quang, Thai Nguyen, Phu Tho, Bac Giang, Ha Giang, Lao Cai, Yen Bai, Lai Chau, Dien Bien, Son La and Hoa Binh.

Though registering a growth rate of 12.8 percent in 2007, GDP per capita in the region stands at just 50 percent of the national average rate.

Representatives of foreign donors will make field-trips to ODA-funded projects in Sapa district, northern Lao Cai province, where their mid-term meeting takes place.