*Many NA deputies voiced theirconcerns over the losses and wastefulness in managing and using ODA. Aspermanent member of the NA Committee for Financial and BudgetaryAffairs, what do you think about this?
I see that ODA sourceshave made great contributions to national socio-economic development.However, inspections showed that there are ineffective ODA projectswhich are not in urgent need of investment. In addition, many ODAprojects adopt regulations on foreign contractors or the mandatory useof materials and fuel of ODA donor countries which increase projectexpenditures and reduce the effective use of ODA.
The NACommittee for Financial and Budgetary Affairs has exercised supervisionand made reports on public debt issues including problems andrecommendations. But, it needs supervision at a higher level from the NAStanding Committee or the NA to turn out a more comprehensive review ofthe issue. With such large-scale supervision in co-ordination withGovernment support and a clearer overview of the public debt situation,hindrances and solutions will be mapped out.
*What are the difficulties in monitoring ODA capital? Is there any 'restricted area'?
Wehave no 'restricted area' in managing investment capital, publicfinance and debts. Even security issues still undergo audit andinspection under the security mechanisms.
It is difficult for theNA to supervise objectives using ODA sources as they are spread outover ministries, departments and localities. In addition, the NACommittee for Financial and Budgetary Affairs faces challenges inmonitoring individual ODA project as the Committee mainly conductsoverall supervision. Thus, it is necessary to use other State tools suchas State Audit to assist the NA in dealing with this issue.
*Itwas suggested that Vietnam should 'graduate' from ODA. Do you think thisis appropriate while the budget is limited and the country needsinvestment capital for development?
Vietnam has an enormousdemand for capital to invest in the economy and to achieve its goals setout for industrialisation and modernisation. Foreign capital sourcesare of great importance as domestic sources cannot help fulfil thetargets.
Moreover, borrowing ODA loans has more advantages thanmobilising from internal sources. In recent years, along with budgetoverspending, capital mobilised for Government bonds and rollover loans,Vietnam has to borrow an additional 400 trillion VND (18.8 billionUSD). But the interest rates of commercial loans are higher than ODAloans and repayment pressure is very high.
*How can Vietnam effectively manage and use ODA sources?
AsI've mentioned above, we only grant ODA to necessary and urgentprojects. In addition, ODA projects should follow a series ofregulations. For instance, the cost per unit of an ODA project must belower than that of a corresponding project using domestic sources. Isuggest stopping ODA projects with a high cost per unit during theinvestment appraisal.-VNA
Investors upbeat about Vietnam’s industrial property market
Investors are bullish on Vietnam's industrial property market growth on the back of the nation's strategic location, sound infrastructure, and increasing demand for industrial space, particularly industrial parks that meet green standards, according to market research.
