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Vietnam Today

PM provides guidance on ODA use

Released at: 17:04, 03/03/2015

PM provides guidance on ODA use

Guidance to enhance cooperation between Vietnam and ODA sponsors.

by Minh Tuyet

Prime Minister (PM) Nguyen Tan Dung has issued direction on the use of ODA funds.

He has asked the Ministry of Planning and Investment (MPI) to work with World Bank (WB) to prepare a report on Vietnam's investment and business environment. The content will focus on shortcomings and sectors in need of innovation and reform of the investment and business environment to meet ASEAN 6 standards.

MPI, the Ministry of Transport, the Ministry of Finance and related agencies must cooperate in positive and active ways with the WB to accomplish the Dau Giay - Phan Thiet Highway Project, which is being conducted under the PPP form.

The PM assigned Ministry of Agriculture and Rural Development, MPI and the State Bank of Vietnam to collaborate with the WB to finish preparations for a general rural development project to improve adaptation with climate change in the Mekong Delta. There were also extended areas in the projects, including protection of forests and salt marshes.

MPI must be active in supplying the necessary information to the WB on expected plans for Vietnam's socio-economic development in the next five or ten years. In doing so, the WB will have reference information to better cooperate with related agencies to conduct its Vietnam Report in 2035.

The PM also emphasized agencies must save on the use of ODA and preferential capital loans, especially in technical support. Moreover, visits and examinations to foreign countries should be limited, so that capital will be prioritized for other investment sectors.

MPI also has the responsibility to announce the related agencies and sponsors that must supervise and report to the PM after conducting the above missions.

According to the Office of the National Steering Committee, ODA and preferential loans signed in 2014 totaled $4.326 billion, with $4.16 billion in ODA and preferential capital loans and $202.05 billion in grant aid.

Its report showed that ODA disbursement in 2014 was $5.6 billion, of which $5.25 billion was ODA and $350 million was grant aid. Disbursement in 2014 was 9 per cent higher than in 2013.

Among ODA disbursement in 2014 were $2.45 billion for basic construction capital, $2.1 billion for re-lending capital, about $318 million for administration and about $732 million in support capital.

Thanks to the strong methods of the Steering Committee, ODA disbursement in 2014 improved considerably. Major sponsors still continue with high disbursement ratios, such as JICA with $1.773 billion, the WB with $1.386 billion, and the ADB with $1.058 billion.

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