The Prime Minister has issued a decision approving a plan to attract official development assistance (ODA) and foreign preferential loans during 2016-2020.
The banks of the Huong river in Thua Thien-Hue province were upgraded to serve tourist boats. The upgrade was funded by the Republic of Korea__Photo: Quoc Viet/VNA
According to initial reports of ministries, sectors and localities, Vietnam needs around USD 39.5 billion in ODA and preferential loans in the 2016-2020 period for transport, urban development, agriculture and rural development, environment, education, training, healthcare, and science and technology.
Under Decision No. 251 dated February 17, the total ODA and preferential loans in the 2011-2015 period which have not been disbursed were about USD 22 billion, mostly for investment projects financed by six development banks.
Therefore, during 2016-2020, the Government will manage to fulfill these projects and plans on schedule and adopt policies and measures to lure, manage and effectively use ODA and soft loans.
The Government will manage ODA and preferential loans through decentralization to sectors and levels while ensuring close management, inspection and supervision by relevant agencies.
The attraction, management and use of ODA and soft loans must be carefully reviewed and balanced in the total investment capital sources to ensure public and government debts and state budget deficit within the limit.
During the period, the country is expected to disburse USD 25-30 billion worth of ODA and preferential loans, up 14 percent over the 2011-2015 period and accounting for 55-66 percent of the total development funds raised from foreign sources.- (VLLF)