As calculated by economic experts, for socio-economic development period 2016-2020, Vietnam needs to mobilize a huge ODA investment up to US$39.5 billion. This is the main content of the project “Orientation of attracting, managing and using ODA and foreign preferential loans in the period 2016 - 2020” recently approved by the Vietnamese government.
According to the Ministry of Planning and Investment, reports from ministries, departments and localities show total demand for mobilized and used ODA and preferential loans period 2016 - 2020 is about US$39.5 billion (approximately VND900 trillion). Of which, the Group A projects of high capital consumption remain concentrated in transport, infrastructure, urban development, agriculture and rural development, environment, education and training, health, science and technology.
Of nearly US$40 billion mentioned above, capital transitioned from the 2011- 2015 period due to tardiness in disbursement is about US$22 billion. Considering the progress of signed programs and projects, total ODA and preferential loans mentioned above expected to be disbursed during the period 2016 -2020 will reach US$25-30 billion, an average of US$5 - 6 billion/year, up 14 percent over the 2011 - 2015 period and accounts for approximately 55 - 66 percent of external development aid.
However, a problem for policy makers at the moment is that Vietnam has lost its position as a middle income country. This means that most countries and international donors will adjust their aid policy considerably; means that partners will move from aid to business relationships.
Faced with urgent demands from this current situation, it’s extremely crucial to construct the ODA scheme for the 2016-2020 period to formulate policies and work out measures to maintain an efficient mobilization and use of ODA and foreign preferential loans, contributing to the success of the socio-economic development strategy ten year period from 2011 to 2020 as well as the five-year plan of socio-economic development period 2016 - 2020. The government’s motto is to rely mainly on national strength, while proactively and actively mobilizing foreign capital, of which the official development assistance (ODA) and preferential loans continue to play the key role.
In parallel, the government also asks administrative departments and local authorities to continue shaping and promoting policies and measures of attracting, managing and using effectively ODA and preferential loans on the basis of guidelines and priorities set out in this scheme to create overlapping funding and sustainable premises for the post 2020 period. The government is also the headquarter, unifying state management and concessional loans based on each level’s demands as well as accountability, authority and management capacity and reactiveness of each level; ensuring a coordinated management, inspection and supervision in relevant agencies.
As for using funds, the government confirms ODA is an important economic resource of the whole society. Therefore, it must be viewed and balanced in the overall picture of development investment, must be kept in line with objectives of the foreign debt and national debt strategy period 2011 - 2020 with a vision towards 2030, the socio-economic development plan, the medium term public investment plan and the medium-term financial plan for 5 years from 2016 to 2020, keeping indicators of public debt, government debt and state deficit within allowable limit.
Another measure to keep the ODA transparent and healthy also mentioned by the government is for concerned agencies, units and localities to continue strengthening inspection, supervision and evaluation of the use ODA and preferential loans, maintaining investment efficiency, work quality and in accordance with law; actively preventing and strictly punishing negative behaviour such as corruption and waste to prevent the loss of this important resource.
Anh Phuong
Vietnamese
