VN to seek $40b of aid, loans for projects

Saturday, Feb 20, 2016 09:00

Nhat Tan Bridge, the biggest cable-stayed bridge in Viet Nam currently, is funded by ODA capital of Japan. — Photo doanhnhansaigon

HA NOI (Biz Hub) — The Prime Minister has recently approved a project of attracting, managing and using official development assistance (ODA) and foreign preferential loans for the period of 2016-2020.

In the period 2011-2015, the total ODA and preferential loans that had not been disbursed was about US$22 billion. Most of them were for projects financed by development banks.

Thus, in the period of 2016-2020, one of the most important tasks of the government was to fulfill the projects and plans on schedule to serve the country's socio-economic development.

The government will also have policies and measures of luring, managing and effectively using the ODA and loans with an aim to create a stable capital source for the period after the year 2020.

The State and Party have policies to lure ODA and foreign loan sources to implement the 5-year socio-economic plan of 2016-2020 that was drawn out in the 12th Party Congress.

According to initial reports by ministries, sectors and local governments, the total demand of ODA and preferential loans for the 2016-2020 period was about $39.5 billion.

Projects that need large amounts of capital will be in transport, urban development, agriculture and rural development, environment, education and training, healthcare, and science and technology.

Disbursement of the total ODA and preferential loans will reach $25-30 billion during the period or $5-6 billion a year.

The disbursement will increase 14 per cent against the 2011-2015 period and account for 55-66 per cent of the total development funds lured from foreign sources.

The ODA and loan disbursement in this period is forecast to have high feasibility because most of the projects will be continued from the last period.

Besides, the projects were put in the list of mid-term public investment plans with conditions to ensure the counterpart funds and commitments with donors.

The Government has agreed to decentralise the ODA and preferential loan sources to localities and sectors based on their capabilities and responsibilities to ensure co-operation and monitoring among relevant agencies.

Attracting, managing and using the ODA and preferential loan sources must be carefully balanced in the total investment capital sources and in accordance with the national public and foreign debt strategy in the period of 2011-2020 with vision to 2030.

The use of the ODA and soft loan sources must be closely monitored and evaluated so as to reduce corruption and waste.

The successful implementation of the ODA and soft loan project for the period of 2011-2015 has made contribution to the socio-economic development plan.

Viet Nam has become a middle-income country so the policies of ODA donors will be changed in the next years. The donor-donee relationship will be shifted to partnerships.

To adapt to the new relations, it was necessary to set up the ODA and soft loan project for 2015-2020 to push up the socio-economic development plan. — VNS

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