Hanoi admits anti-graft fight is falling short

HANOI, Nov 1 (Reuters) Government agencies are not doing enough to fight corruption in Vietnam, harming development and costing the country hundreds of millions of dollars this year, officials told the National Assembly, or parliament.

The ruling Communist Party, rocked by a corruption scandal that ousted a cabinet minister in April, fears endemic graft is undermining its one-party rule and discouraging investment as it joins the World Trade Organisation this month.

Vietnamese media today quoted a government report to parliament as saying prosecutions of economic crimes were up 37 percent from last year.

It said losses amounted to 498 million dollars, a significant amount of money in the under-developed Southeast Asian country which would spend about 25 billion dollars in investment in 2006 to fuel economic growth.

''We have to admit that the core agencies charged with fighting corruption are not entirely powerful enough and not regarded as effective forces,'' state-run media quoted Government Chief Inspector Tran Van Truyen as saying.

Truyen's report to the National Assembly admitted weaknesses in the battle against corruption.

''The implementation of the Anti-Corruption Law at some ministries and provinces is not good, and in some cases even artificial,'' Truyen said.

National Assembly deputy Nguyen Ngoc Tran from the southern province of An Giang said: ''Corruption like this makes it impossible for a sustainable and quality development.'' Vietnam's economy is one of the world's fastest growing after China, averaging 7.5 per cent between 2001 and 2005. Next week, the WTO general assembly in Geneva was expected to admit the country as its 150th member, opening the economy to more investment and competition.

Hanoi will also host its biggest international event between November 12-19 when officials and leaders from the 21-member Asia-Pacific Economic Cooperation forum gather in the capital.

In 2007, the government would focus on raising transparency within state agencies and a campaign for citizens to declare personal assets and wealth, the government inspector said.

REUTERS MS KP1235