Statement of H.E. Mme ton nu thi ninh

Head of the Vietnamese Delegation

at the Third United Nations Conference on Least Developed Countries

(Brussels, 14-20 May 2001)

 

 

    Mr. Chairman,

Excellencies,

            Distinguished Delegates,

            Ladies and gentlemen

 

            First of all, allow me, on behalf of the Government of Vietnam, to express our gratitude to the United Nations for holding the Third Conference on Least Developed Countries. My thanks also go to the European Union and the Government of Belgium for hosting this important event and giving us their warmest hospitality.

 

            Mr. Chairman,

 

The Third United Nations Conference on Least Developed Countries which takes place at the beginning of the 21st century is an important occasion for the international community to share the difficulties and challenges that LDCs are facing in the era of globalisation. Through this conference, the international community can discuss and reiterate its strong support for the future development of LDCs in the first decade of the new century.

 

            Since the Second Conference, new developments in the international environment, particularly the accelerating process of globalisation and the emergence of the knowledge economy, have brought about great challenges to LDCs. While trade preferences from developed countries have been gradually removed, the existing international trading system still holds many inequalities and disadvantages for poor countries. Their terms of trade are worsening substantially, which makes them lag further behind and affects the lives of a large section of their population, especially farmers. Furthermore, debt has become a serious problem that LDCs can hardly address by themselves. Meanwhile, financing sources for development, particularly official development assistance, are shrinking and are increasingly attached more stringent conditionalities. Moreover, the efforts of the international community to promote the integration of the LDCs into the regional and global economy have resulted in little progress, mainly because of their difficulties, inter alia, inadequate infrastructure, unstable prices and foreign exchange rates, small-scale production, absence of implementation rules etc.

 

These unfavorable conditions of the international environment have marginalised LDCs and widened the gap between the rich and the poor, between the have and the have-not.

 

In this context, bridging the development gap becomes our top priority in the first decade of the 21st century. A new Programme of Action for LDCs is therefore needed to reiterate international support and clarify concrete commitments, especially those from developed countries, to help LDCs cope with development challenges. In the upcoming years, more preferences in all aspects of international economic relations should be given to LDCs and other poor countries. First, the international trading system must take into account legitimate interests of LDCs, especially with regard to the issues of agriculture, garment and textiles etc. in the course of the next WTO negotiations round. In this respect, due focus should be given to the leverage impact of trade promotion, including market access. In addition, the accession of non-member countries, almost all of which are LDCs and developing ones, to the WTO should also be facilitated so as to help further integrate these countries into the world economy.

 

Second, LDCs is facing a serious shortage of development financing. In the upcoming years, it is essential that donor countries increase ODA budget to their committed level of 0.7% GNP, or at least refrain from any cut-backs. Otherwise it will have a serious negative impact on LDCs and developing countries.

 

Third, resolving the debt problem is a crucial factor in reviving the development momentum of LDCs. We highly appreciate the recent initiatives of debt reduction and debt forgiveness for highly indebted poor countries (HIPCs), but insist that further steps be taken and that these initiatives be extended to a wider range of debtor countries.

 

            Fourth, technological capability building is of particular importance for the LDCs since the success in technological advancement constitutes a key factor in their ability to compete in the regional and global markets. Therefore, we believe that developed countries should help the LDCs promote industrial restructuring.

 

            Fifth, the divergence regarding factor endowments, market size, etc. among the LDCs demonstrates that there is a possibility for complementary development. Therefore, economic and trade cooperation among the LDCs should be further promoted.

 

            Mr. Chairman,

 

In a world of increasing interdependence, international efforts for a more equitable development will definitely contribute to the maintenance of peace, stability and the interests of all countries. Though Vietnam is not an LDC, it is a poor developing country and has similar economic difficulties of LDCs. We therefore understand and share many of their concerns. In the spirit of solidarity and friendship with LDCs, we hope that the first decade of this century will witness the graduation of many countries from LDC status as well as a remarkable progress on their path to prosperity.

 

Thank you Mr. Chairman.