Vietnam to remove obstacles in ODA capital

A meeting between the government and a group of six foreign development banks on addressing obstacles to boost the disbursement of ODA loans was held on September 30, chaired by Deputy Prime Minister Pham Binh Minh.

The disbursement rate as well as the issuance of work permits for ODA project experts have been seriously affected by Covid-19. The import of equipment and goods for ODA projects has also been impacted, according to Deputy Minister of Planning and Investment Tran Quoc Phuong. The Ministry of Planning and Investment will therefore work to simplify procedures relating to ODA project implementation.

Bank representatives also proposed amending a draft Decree replacing Decree No. 56, including procedures for project adjustment and methods of budget support for businesses in ODA loans. Vietnam also needs to prepare a number of large ODA projects instead of small projects, to increase efficiency in using ODA loans, according to Ms. Carolyn Turk, World Bank (WB) Country Director for Vietnam.

In order to speed up the disbursement of public investment capital, including ODA loans and concessional loans, the Deputy Prime Minister asked the development banks to review their processes and procedures in order to remove obstacles, while speeding up implementation progress and promoting the disbursement of ODA capital.

In terms of orientation in the 2021-2025 period, the government is seeking to further attract, manage, and use ODA loans and concessional loans from foreign donors. On that basis, the Deputy Prime Minister hopes that the six development banks will cooperate with the government to build ODA projects in line with Vietnam’s development goals.