Politburo member, Deputy Prime Minister, Foreign Minister and Head of the National Steering Committee for ODA and preferential loans, Pham Binh Minh has directed the Ministry of Planning and Investment to complete the draft decree on the management and use of ODA capital and preferential loans, which must be submitted to the Government before February 20.
The draft decree is built to ensure the consistency, synchronism and conformity with the provisions of the 2019 Law on Public Investment, the 2017 Law on Public Debt Management, the 2015 Law on State Budget, and the 2016 the Law on International Treaties. According to current regulations, foreign donors’ ODA and preferential loans are part of public investment, so the use of the fund must be in accordance with provisions of the 2019 Law on Public Investment.
The promulgation of the new decree will contribute to strengthening management and simplifying procedures, thus facilitating the receipt of non-refundable ODA.
As Vietnam has graduated from ODA, the country’s access to preferential loans has become more limited and the interest rates have become higher. The Government has promulgated a number of regulations to increase the attract and use of preferential loans, including the Decree on re-lending of Government’s foreign capital loans to centrally-run city and provincial level People’s Committees, and the Prime Minister-approved decision on orientations for the attraction, management and use of ODA and preferential loans from foreign donors for 2018-2020 with a vision for 2021-2025.
The Government has also cut off capital for projects with slow disbursement to increase capital for other projects, and has not used funds borrowed from ODA for regular spending.