National Committee Meets to Expedite ODA and Concessional Loan Disbursement

Deputy PM Bui Thanh Son, who also heads the National Steering Committee for ODA and Concessional Loans, emphasized the importance of accelerating the implementation of projects and ensuring effective capital utilization. This statement was made during a committee meeting on April 13, 2025.

Enhancing Capital Utilization Effectiveness:

According to Son, expediting public investment capital disbursement, including ODA and concessional loans, is vital for unlocking development resources. He noted that to maintain high economic growth in the coming years, efficient use of ODA is crucial. However, ODA disbursement has been slow, with an annual average disbursement rate of only 52% between 2021 and 2024. In the first four months of 2025, the rate was a mere 4.6%, significantly lower than the national average for public investment disbursement.

Vietnam’s Deputy Prime Minister Bui Thanh Son chairs a meeting of the National Steering Committee for ODA and Concessional Loans. (Photo: VNA)

Son acknowledged the strategic importance of domestic resources but highlighted the crucial role of external funding, especially in sectors where Vietnam faces technological gaps. ODA has supported Vietnam’s development and helped the country achieve several UN Sustainable Development Goals ahead of schedule.

Moving forward, Son stated that Vietnam will prioritize projects with significant ODA funding, high concessionality, short implementation periods, and reduced red tape, especially in infrastructure and climate change adaptation. He also emphasized the need to prepare key projects for direct engagement with international partners.

The Deputy PM instructed the Ministry of Finance to incorporate feedback and update reports for an upcoming meeting with foreign donors in May. He also tasked the ministry with coordinating with relevant agencies to propose consolidating the steering committee and finalizing legal documents to address institutional bottlenecks, including a new decree on ODA and concessional loan management.

Addressing Slow Disbursement:

Deputy Minister of Finance Tran Quoc Phuong reported on the ODA and concessional loans committed for 2021–2024, totaling approximately 3.32 billion USD. In 2025, the Ministry of Finance has actively pursued new loan negotiations and agreements. However, several challenges were outlined, including legal inconsistencies and lengthy negotiation processes due to provisions in the Law on International Treaties.

ODA and concessional loan-funded projects must navigate both Vietnamese laws and donor regulations, which often differ and lack harmonization. Additionally, the preparation of investment projects by managing authorities has been slow, with prolonged administrative procedures and delays in budget allocation.

At the meeting, various ministries, sectors, and localities reviewed their performance in managing and utilizing ODA and concessional loans. They proposed institutional reforms, capital allocation strategies, and disbursement measures to improve efficiency and address existing challenges.