Simplify procedures, increase decentralization to improve ODA capital efficiency

(Chinhphu.vn) - With Decree 242/2025/ND-CP, the Government aims to simplify procedures, promote decentralization, ensure transparency and efficiency in ODA capital management, while being consistent with the 2024 Public Investment Law and meeting development requirements in the new period.

Workshop to disseminate Decree No. 242/2025/ND-CP of the Government on management and use of official development assistance (ODA) capital and foreign preferential loans - Photo: VGP/HT

Decree 242/2025/ND-CP: A turning point in ODA capital management

On September 26, the Department of Debt Management and Foreign Economic Relations ( Ministry of Finance ) organized a workshop to disseminate Decree No. 242/2025/ND-CP of the Government on management and use of official development assistance (ODA) and foreign preferential loans.

The conference was attended by representatives of central and local ministries, branches, agencies, organizations, enterprises, bilateral and multilateral donors, international organizations providing ODA capital and preferential loans to Vietnam, and representatives of departments, branches and sectors of 20 northern provinces and cities.

Mr. Nguyen Quoc Phuong, Director of the Department of Debt Management and Foreign Economic Relations (Ministry of Finance) said that Decree 242 is of special importance, an opportunity for the Government, ministries, branches, localities, the business community and international partners to study and discuss in depth the new regulations.

Over the past 30 years, ODA capital and foreign preferential loans have made an important contribution to the country's development, through many bridge, highway and clean energy projects. However, along with the growing development needs, the deployment of this capital source still has many limitations, especially related to the legal basis and administrative procedures.

From that practical requirement, the Ministry of Finance has revised Decree 114/2021/ND-CP, replacing it with Decree 242/2025/ND-CP.

Decree 242 focuses on four main orientations: synchronizing with the legal system, harmonizing international practices; simplifying processes, shortening approval and implementation time; increasing autonomy for ministries, branches and localities associated with accountability; creating conditions for state-owned enterprises and encouraging the participation of the private sector.

"Decree 242 is an important turning point, creating a synchronous legal corridor, consistent with the Public Investment Law 2024 and related laws. This is a testament to the Government's determination to reform international capital management, especially in the context of Vietnam entering a new development stage with great capital needs for modern infrastructure, green transformation, digital transformation, climate change response and ensuring social security," Mr. Nguyen Quoc Phuong emphasized.

Mr. Nguyen Quoc Phuong, Director of the Department of Debt Management and Foreign Economic Relations: Over the past 30 years, ODA capital and foreign preferential loans have made an important contribution to the country's development - Photo: VGP/HT

Simplify procedures, promote decentralization

Mr. Nguyen Trong Nghia - Head of Debt Management and Financial - Economic Cooperation with Multilateral Organizations further analyzed: Decree 242 brings 3 major groups of solutions.

Firstly, the Decree helps simplify administrative procedures by eliminating many unnecessary intermediate approval and appraisal steps for ODA and preferential loan projects. Procedures for adjusting project documents are shortened, only requiring the opinion of the Ministry of Finance when there are adjustments that increase capital significantly. At the same time, the process of receiving loans, assigning capital plans, using surplus capital, and selecting a serving bank is also streamlined.

Second, the Decree promotes decentralization and delegation of power. Delegate the right to decide on investment policies for many projects that were previously under the Prime Minister's authority to ministries, branches, and localities. The competent authority is authorized to decide on the use of surplus capital and adjust projects of state-owned enterprises that re-borrow ODA capital and preferential loans.

Third, the Decree clarifies regulations for state-owned enterprises using ODA loans and preferential loans; adds regulations on handling assets and equipment handed over by donors; and resolves problems related to transitional provisions for targeted budget support.

Delegates attending the workshop highly appreciated the content of Decree 242 as well as its timely dissemination to relevant parties. Representatives of the Ministry of Finance also directly discussed and answered questions from businesses, project management boards and international partners.

An important new point in Article 5 of Decree 242/2025/ND-CP is the change in regulations on priority use of ODA capital and preferential loans.

The Government has removed the regulation on prioritizing non-refundable ODA capital for supporting policy, institutional and reform development. Instead, the Decree adds new priority areas including: science and technology, innovation and digital transformation; special public investment projects; large and key programs and projects that are intended to turn the situation around.

According to experts, this change is suitable for the new development context, ensuring international capital is allocated effectively, linked to the urgent needs of the country.

Director Nguyen Quoc Phuong affirmed that the Ministry of Finance and the Department of Debt Management and Foreign Economic Relations will always accompany ministries, branches and localities in the process of implementing Decree 242. The guidance and removal of difficulties will be carried out quickly and easily, to ensure the highest efficiency for each capital amount.

"The biggest goal is that every ODA capital and foreign preferential loan is used effectively, serving the strong and sustainable development of Vietnam," Mr. Nguyen Quoc Phuong emphasized.

Mr. Minh

Source: https://baochinhphu.vn/don-gian-thu-tuc-tang-phan-cap-de-nang-cao-hieu-qua-von-oda-10225092616494327.htm