Workshop on the management and utilization of ODA funds and concessional foreign loans.

Photo caption — The Binh Khanh Bridge, spanning the Soai Rap River and connecting Hiep Phuoc commune with Binh Khanh commune ( Ho Chi Minh City), was built with ODA funding. (Illustrative photo: Hong Dat/TTXVN)

Mr. Nguyen Quoc Phuong, Director of the Department of Debt Management and External Economic Relations ( Ministry of Finance ), stated that over the past 30 years, ODA and preferential foreign loans have played a crucial role in Vietnam's socio-economic development.

However, during the implementation process, along with the country's strong development and the increasing needs from localities and businesses, some shortcomings and limitations have arisen. In particular, legal obstacles related to ODA loans, preferential loans, and coordination between agencies and units indicate the need for adjustments and innovation.

The Ministry of Finance has made efforts to incorporate feedback from organizations and agencies involved in ODA loans to address difficulties and obstacles. Accordingly, from September 2025, Decree No. 242/2025/ND-CP on the management and use of official development assistance and preferential foreign loans will be issued and officially come into effect.

The new decree has addressed many shortcomings, strengthened the legal basis, and ensured greater transparency, consistency, efficiency, and alignment with the public investment system.

Decree No. 242/2025/ND-CP focuses on several important directions such as perfecting the legal framework, ensuring consistency within the legal system, and harmonizing with international practices. Along with that, it aims to reform administrative procedures, simplify and shorten the process of project appraisal, approval, and adjustment.

The decree also aims for clearer decentralization and delegation of power, increased autonomy for ministries, departments, and localities, while linking it to transparent accountability.

At the workshop, representatives from the Department of Debt Management and External Economic Relations introduced several new points of Decree No. 242/2025/ND-CP, focusing on three major groups of solutions.

Firstly, simplify administrative procedures, abolish many unnecessary intermediate approval and appraisal regulations for ODA projects and preferential loans; streamline procedures for adjusting project documents, only seeking the opinion of the Ministry of Finance when adjustments result in a large increase in capital; simplify the process of receiving loans, allocating capital plans, using surplus capital, and selecting servicing banks; significantly reduce the number of cases requiring adjustments to investment policies, helping to accelerate project progress.

Next, it is necessary to strengthen decentralization and delegation of authority, granting the power to decide on investment policies for Group A projects and many projects previously under the Prime Minister's authority to ministries, sectors, and localities; assigning the managing agency the authority to participate in most regional projects, except for some specific fields; and decentralizing the managing agency to decide on the use of surplus capital and project adjustments for state-owned enterprises that borrow ODA funds and preferential loans.

Furthermore, the Decree also refines mechanisms and removes obstacles such as clarifying regulations on state-owned enterprises using ODA funds and preferential loans, creating favorable conditions for public investment; supplementing regulations on handling assets and equipment handed over by donors to ensure a transparent legal basis; including transitional provisions for targeted budget support; supplementing the decentralization of budget expenditure for science, technology, innovation and digital transformation; and allowing for electronic withdrawal of funds, in line with the trend of digital transformation and the requirements of donors.

Also at the workshop, representatives from ministries, departments, localities, donors, and businesses exchanged views on improving the legal framework for managing and implementing public investment projects, especially those using foreign loans and aid.

The discussions focused on issues such as removing rigid regulations on project implementation timelines to increase flexibility; considering the use of donor commitment documents as a basis for approval; providing specific guidance on prioritizing the use of military forces; adjusting the management mechanism of aid programs and projects according to general regulations; clearly defining deadlines for responding to feedback during the application review process; and resolving obstacles related to financial mechanisms, including the loan-to-value ratio and differences between localities.

The Ministry of Finance affirms that it will continue to support, guide, and promptly resolve difficulties and obstacles to ensure that the Decree is quickly put into effect, contributing to the rapid and sustainable development of the country.

Source: https://baotintuc.vn/kinh-te/hoi-thao-ve-quan-ly-su-dung-von-oda-va-vay-uu-dai-nuoc-ngoai-20250926163446113.htm