Ben Thanh - Suoi Tien metro route, one of major projects in HCM City using ODA capital. (Source: VNA)Hanoi (VNA) – Vietnam has received 80 billion USD in officialdevelopment assistance (ODA) and preferential loans since 1993, becoming one ofthe largest ODA recipients in the world, said Deputy Prime Minister andMinister of Foreign Affairs Pham Binh Minh.
Of the total amount, more than 70 billion USD came from low-interest loans(under 2 percent), and 7 billion USD was in non-refundable assistance, Minhsaid a working session between the Government and a supervision delegation ofthe National Assembly Standing Committee in Hanoi on July 25.
As most of the loans have been effectively disbursed, sponsors have continued toprovide preferential loans and ODA for the country in recent years, he said.
However, efforts must be put in place to address the inefficient investmentusing ODA sources, he noted.
ODA has played a huge role in the nation’s socio-economic development,especially in terms of investment needed for infrastructure and enhancing theGovernment’s management capacity, he said, adding that during meetings withforeign officials, Vietnamese leaders have asked international donors tocontinue provide preferential loans for the country.
Vietnam is approaching the point of receiving ODA with less favourable interestrates and, therefore, it is necessary to change its methods of attractingfunding such as ensuring loan efficiency and debt settlement ability, heunderlined.
Deputy PM Minh said that the Government has ordered the Ministry of Finance andthe Ministry of Planning and Investment to make meticulous evaluations offoreign loans and bonds to draw up rational measures.
The Government recently issued Decree No.97/2018/ND-CP on re-lending ODA andsoft loans to cities and provinces, with re-lending rates widely rangingbetween 30-100 percent. The move aims to place more responsibility on localauthorities in the use of foreign loans.
At the event, Minister of Planning and Investment Nguyen Chi Dung reported onthe implementation of policies and regulations on the management anddisbursement of foreign loans during 2011-2016.
Dung underlined that legal documents were issued comprehensively and in linewith the current situation, helping to improve efficiency in the use of ODA andother preferential loans to boost the country’s socio-economic development.
According to reports from the Japan International Cooperation Agency (JICA),Asian Development Bank (ADB), and World Bank (WB), projects funded by the threesponsors in Vietnam are more effective than those in India, Indonesia, thePhilippines, and Sri Lanka.
ODA has helped Vietnam better its infrastructure systems and ensure socialsecurity, particularly in mountainous and remote areas. The funds also helpedto accelerate technology transfer and management skills from developedcountries, while also creating more jobs for local labourers.
However, there are many shortcomings which need to be tackled in theattraction, management, and use of ODA capital, including slow capitaldisbursement and project implementation.–VNA
Of the total amount, more than 70 billion USD came from low-interest loans(under 2 percent), and 7 billion USD was in non-refundable assistance, Minhsaid a working session between the Government and a supervision delegation ofthe National Assembly Standing Committee in Hanoi on July 25.
As most of the loans have been effectively disbursed, sponsors have continued toprovide preferential loans and ODA for the country in recent years, he said.
However, efforts must be put in place to address the inefficient investmentusing ODA sources, he noted.
ODA has played a huge role in the nation’s socio-economic development,especially in terms of investment needed for infrastructure and enhancing theGovernment’s management capacity, he said, adding that during meetings withforeign officials, Vietnamese leaders have asked international donors tocontinue provide preferential loans for the country.
Vietnam is approaching the point of receiving ODA with less favourable interestrates and, therefore, it is necessary to change its methods of attractingfunding such as ensuring loan efficiency and debt settlement ability, heunderlined.
Deputy PM Minh said that the Government has ordered the Ministry of Finance andthe Ministry of Planning and Investment to make meticulous evaluations offoreign loans and bonds to draw up rational measures.
The Government recently issued Decree No.97/2018/ND-CP on re-lending ODA andsoft loans to cities and provinces, with re-lending rates widely rangingbetween 30-100 percent. The move aims to place more responsibility on localauthorities in the use of foreign loans.
At the event, Minister of Planning and Investment Nguyen Chi Dung reported onthe implementation of policies and regulations on the management anddisbursement of foreign loans during 2011-2016.
Dung underlined that legal documents were issued comprehensively and in linewith the current situation, helping to improve efficiency in the use of ODA andother preferential loans to boost the country’s socio-economic development.
According to reports from the Japan International Cooperation Agency (JICA),Asian Development Bank (ADB), and World Bank (WB), projects funded by the threesponsors in Vietnam are more effective than those in India, Indonesia, thePhilippines, and Sri Lanka.
ODA has helped Vietnam better its infrastructure systems and ensure socialsecurity, particularly in mountainous and remote areas. The funds also helpedto accelerate technology transfer and management skills from developedcountries, while also creating more jobs for local labourers.
However, there are many shortcomings which need to be tackled in theattraction, management, and use of ODA capital, including slow capitaldisbursement and project implementation.–VNA
VNA
