ODA attraction, use directions issued for 2016–2020

Directions for the attraction, management and use of foreign sponsors’ official development assistance (ODA) and preferential loans from 2016 to 2020 have been issued. 

A similar ODA blueprint for 2011 to 2015 helped achieve targets set in the period’s socio-economic development plan. 

The 2016-2020 plan takes into consideration Vietnam’s status as a middle-income country, which it acquired more than a year ago. The new status is expected to shift relationships with foreign sponsors of ODA and preferential loans from assistance-based to partnership-based. The ODA blueprint for 2016-2020, approved by the Prime Minister, outlines policies to ensure the effective mobilization and use of ODA and concessional loans, helping complete socio-economic development objectives.

While the Party and State recognize the importance of foreign aid and loans, they say internal resources are the best way to attain development goals.

ODA and preferential loans from 2011-2015 programs that haven’t been disbursed total about 22 billion USD. The new blueprint focuses on finishing these as scheduled, in which mostly for investment projects financed by six development banks.

In addition, during 2016-2020, the Government will manage to fulfill these projects and plans on schedule and adopt policies and measures to lure, manage and effectively use ODA and soft loans.
According to preliminary reports from ministries, sectors and localities, demand for ODA and preferential loans for 2016-2020 is very high, about 39.5 billion USD. Most of the sum will be earmarked for transport, urban development, agriculture, rural development, environment, education, training, health care, science and technology.

The disbursed ODA and preferential loans between now and 2020 is expected to be 25-30 billion USD, up 14 percent over the past five years and accounting for 55-66 percent of the total development funds raised from foreign sources.

The disbursement of foreign aid and loans by 2020 is considered highly feasible, since a majority of the programs and projects have already been launched and Vietnam has ensured conditions for the provision of its corresponding funds.

The Government will manage ODA and preferential loans through decentralization to sectors and levels while ensuring close management, inspection and supervision by relevant agencies.

The attraction, management and use of ODA and preferential loans must be carefully reviewed and balanced in the total investment capital sources to ensure public and government debts and state budget deficit within the limit.

In order to keep the ODA transparent and healthy is for concerned agencies, units and localities is to continue strengthening inspection, supervision and evaluation of the use ODA and preferential loans, maintaining investment efficiency, work quality and in accordance with law; actively preventing and strictly punishing negative behavior such as corruption and waste to prevent the loss of this important resource.

                                                                                                               Source: VGP News