Aid darling and the European Union’s aid allocation policy: the case of Vietnam

This paper analyses the motivation determining the European Union’s (EU) aid allocation to Vietnam. Existing literature and EU official documents are used to build upon four models with respect to new aid allocation: donor interest, recipient interest, recipient capacity and potential donor influence. The paper concludes that the EU’s aid policy in Vietnam has a long-term objective in conformity with Vietnam’s development strategy—poverty alleviation. Moreover, the EU’s political and economic interests, a successful economic reform and development strategy, a high level of ownership (good governance) and potential donor influence are identified as contributions to make Vietnam an ‘aid darling’.