The WB analysis, “MDGs and the Environment – Agenda for Inclusive and Sustainable Development,” stressed the link between the environment and development and called for urgent action on climate change.

Though the report warned that developing countries are unlikely to reach their MDG targets, particularly in reducing hunger and malnutrition, it said Vietnam has achieved one of the world’s fastest poverty decline rates.

The country reduced poverty from 58 percent in 1993 to 16 percent in 2006, said the report.

Vietnam’s openness to trade along with a number of bilateral and multilateral trade agreements helped it generate foreign direct investment while transforming it from a food-deficit country to a major exporter of agricultural products, the WB analysis said.

But the WB warned that like other developing countries – which stand to suffer the most from climate change and the degradation of natural resources – Vietnam must protect its environment to achieve inclusive and sustainable development.

The report said that a 1 meter-rise in sea level could cause Vietnam to lose 10 percent of its GDP and 10 percent of its wetlands by flooding its vital delta and lowland regions, where most of the country’s rice is grown.

Martin Rama, a lead economist from the WB in Vietnam, said the country’s high inflation and recently-reduced growth rate would have some effects on the country’s poverty reduction goals, but would not necessarily be “a step back” for its ability to achieve its millennium targets.

Ho Quang Minh, head of the Ministry of Investment and Planning’s Department of International Economic Relations, said 2008 was a “challenging year” for Vietnam.

He said Vietnam and its international donors would have to work on increasing the effectiveness of funds currently available, he said.

The Ministry of Natural Resources and Environment planned to submit a comprehensive report outlining the country’s goals in coping with climate change to the National Assembly this October, said Minh.

Vietnamese officials said a new report, “Vietnam Achieving Millennium Development Goals,” would be released by local agencies soon.

Reported by Huong Le