On the morning of September 26, the Ministry of Finance held 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 (Decree No. 242).
Decree No. 242 was just issued on September 10, 2025. Director of the Department of Debt Management and Foreign Economic Relations Nguyen Quoc Phuong said that the workshop is of special importance, an opportunity for the Government, ministries, branches, localities, the business community and international partners to learn more about the Decree.
Over the past 30 years, ODA capital and foreign preferential loans have played an important role in the country's development, with bridges, highways, clean energy projects... However, along with the country's development and the increasing needs of localities and businesses, the implementation of ODA capital and foreign preferential loans has revealed many shortcomings and limitations from the related legal basis, especially the procedures and needs to be changed.
Based on practical requirements, the Ministry of Finance and the Department of Debt Management and Foreign Economic Relations have revised Decree No. 114/2021/ND-CP, replacing it with Decree No. 242.
“Decree No. 242 is an important turning point, aiming to create a synchronous legal corridor, consistent with the Law on Public Investment 2024 and related laws. It is also a testament to the determination of the entire political system and the commitment to sponsors as well as localities and enterprises to unlock national resources, in accordance with the direction of the Party and the Government,” said Director Nguyen Quoc Phuong.
According to the leader of the Department of Debt Management and Foreign Economic Relations, Decree No. 242 focuses on four key orientations.
First, perfect the legal framework, synchronize with the legal system and harmonize with international practices.
Second, reform administrative procedures, simplify procedural processes, shorten approval, adjustment and project implementation time.
Third, promote decentralization and clear delegation of power, increase initiative for ministries, branches and localities along with transparent accountability.
Fourth, there is a mechanism to remove obstacles and at the same time encourage the participation of the private sector, thereby helping to be more proactive and flexible in using international capital and improving governance capacity as well as the efficiency of public investment.
Director Nguyen Quoc Phuong pledged that the Ministry of Finance and the Department of Debt Management and Foreign Economic Relations will always closely accompany ministries, branches and localities in the process of implementing the Decree; provide timely, simple and easy-to-understand instructions to remove arising problems; institutional reform work will always be updated, improving governance capacity in the coming time, aiming at the goal that each ODA capital and foreign preferential loan must be used most effectively, for a strong and sustainable Vietnam.
At the workshop, representatives of the Department of Debt Management and Foreign Economic Relations briefly presented Decree No. 242. Delegates representing ministries, branches, localities, enterprises, project management boards, and international partners expressed their appreciation for the provisions of Decree No. 242 as well as the Ministry of Finance's organization of this workshop to promptly disseminate the provisions to relevant parties; and at the same time, proposed solutions to ensure the use of ODA capital and foreign preferential loans.
Also at the workshop, representatives of the Ministry of Finance discussed and clarified specific questions and difficulties of business representatives, project management boards, and international partners in the application of Decree No. 242.
Important amendments and supplements to Decree No. 242/2025/ND-CP
Simplify administrative procedures : abolish many unnecessary intermediate approval and appraisal regulations for ODA and preferential loan projects; shorten the procedure for adjusting project documents, only requiring the opinion of the Ministry of Finance in case of adjustments that increase capital significantly; simplify the process of receiving loans, assigning capital plans, using surplus capital, and selecting serving banks; significantly reduce cases of having to adjust investment policies, helping to speed up project progress.
Promote decentralization and delegation of power : delegate the right to decide on investment policies for group A projects and many projects previously under the Prime Minister's authority to ministries, branches and localities; assign competent governing bodies to participate in most regional projects, except for some specific fields; delegate authority to governing bodies to decide on the use of surplus capital and adjust projects of state-owned enterprises that re-borrow ODA capital and preferential loans.
Perfecting mechanisms and removing obstacles : clarifying regulations on state-owned enterprises using ODA loans and preferential loans, creating favorable conditions for public investment; supplementing regulations on handling assets and equipment handed over by donors, ensuring a transparent legal basis; having transitional provisions for targeted budget support; supplementing regulations on decentralizing budget expenditures for science, technology, innovation and digital transformation, facilitating the development of new fields; allowing capital withdrawal in the electronic environment, in line with the digital transformation trend and donor requirements.
Source: https://daibieunhandan.vn/moi-khoan-vay-oda-von-vay-uu-dai-phai-duoc-su-dung-hieu-qua-nhat-10388032.html
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