10:58 | 18/03/2016 Economy
(VEN) - Prime Minister Nguyen Tan Dung will oversee a project to direct, attract and manage ODA capital and foreign loans until 2020, as part of the tasks set out at the recent Communist Party of Vietnam congress. Positive results.
The Japanese-ODA project to build the Ben Luc-Long Thanh section of the North-South Expressway
Vietnam has achieved positive results in implementing the socioeconomic development plan for 2011-2015. Apart from domestic sources, official development assistance (ODA) and foreign preferential loans have contributed to this achievement.
However, Vietnam has become an average-income country. For this reason, policies on ODA and foreign preferential loans will change significantly from the development assistance to partnerships. In consideration of this, it is necessary to apply policies and solutions to effectively attract, manage and use ODA capital and preferential loans to create subsequent capital sources and sustainable premise for the period after 2020.
There remains almost US$22 billion worth of ODA and preferential loans which have not been disbursed during 2011-2015 and have been moved to the 2016-2020 period. Of this, most preferential ODA loans have been earmarked for investment projects involving six development banks. For this reason, one of major tasks for the period from 2016-2020 is completing these projects following the committed schedule.
Focusing on priority areas
According to ministries, sectors and local authorities, a huge US$39.5 billion worth of ODA and preferential loans will be required during the 2016-2020 period focusing on projects and programs in transport, urban development, agriculture and rural development, and environment. It is expected that between US$25-30 billion will be disbursed in five years averaging US$5-6 billion per year, a 14 percent increase from the 2011-2015 period and accounting for 55-66 percent of external development capital.
To effectively attract, manage and use ODA and preferential loans from 2016-2020, the government will manage these capital sources via its agencies to ensure investment efficiency and the quality of investment projects, prevent and seriously punish negative cases, corruption and misspending, with a view to strategic goals on public and foreign debts at the national level during the 2011-2020 period, with a vision to 2030.
In addition, the government encourages employment arrangements and sharing among donors in terms of ODA and preferential loan provision within the framework of programs on general development cooperation and co-funding for specific sectors and territories.
ODA capital plays an important role and creates premise for Vietnam to promote industrialization and modernization.
Dinh Dung & Thu Ha