Removing obstacles, improving the efficiency of using ODA capital and preferential loans

On September 26, 2025, in Hanoi, the Ministry of Finance held a workshop to disseminate Decree No. 242/2025/ND-CP of the Government on management and use of ODA capital and foreign preferential loans.

Attending the workshop were representatives of central and local ministries, branches, relevant agencies, organizations and enterprises, and bilateral and multilateral donors, international organizations providing ODA capital and foreign preferential loans to Vietnam.

Overview of the workshop. Photo: Duc Minh.

Speaking at the workshop, Mr. Nguyen Quoc Phuong, Director of the Department of Debt Management and Foreign Economic Relations (Ministry of Finance) emphasized that Decree 242 is of special importance as it not only removes bottlenecks in mobilizing ODA capital and preferential loans but also demonstrates the strong reform spirit of the Government's institutions and policies.

The Decree is in line with the strategic reform orientation through the “Quad Pillars” - four breakthrough Resolutions of the Politburo to unlock resources and create momentum for Vietnam to enter a new development stage, towards the goal of prosperity and strength.

In the context of the country facing many opportunities but also many challenges, the capital demand for infrastructure investment, digital transformation, climate change response and social security is huge.

Decree 242/2025/ND-CP contributes to perfecting the legal framework in line with the Constitution, the 2024 Law on Public Investment and related laws; simplifying procedures, shortening the time for project approval, adjustment and implementation; promoting decentralization, increasing the initiative and responsibility of ministries, branches and localities; supplementing mechanisms to remove obstacles for state-owned enterprises, while harmonizing with international practices.

The workshop is not only a session to disseminate legal documents but also a forum for delegates to exchange, discuss, share experiences and propose solutions to effectively implement the Decree.

This is also an opportunity to listen to opinions from ministries, branches and localities - the direct implementing units; from agencies and enterprises - the beneficiaries; and from development partners - those who have, are and will continue to accompany and support Vietnam on the path of development.

Mr. Nguyen Quoc Phuong delivered the opening speech at the workshop. Photo: Duc Minh.

On behalf of the Organizing Committee, Mr. Nguyen Quoc Phuong expressed his gratitude for the attention and support of bilateral and multilateral sponsors and international organizations that have supported Vietnam not only in terms of capital but also in terms of knowledge, technology and management experience.

The representative of the Ministry of Finance affirmed that it will continue to accompany ministries, branches, localities, enterprises and development partners, promptly guide and remove difficulties and obstacles; at the same time, promote institutional and policy reforms, create a transparent, favorable legal environment in line with international practices.

At the workshop, the representative of the Ministry of Finance introduced Decree No. 242/2025/ND-CP of the Government on the management and use of ODA capital and foreign preferential loans. The Decree was issued in the context of the Public Investment Law No. 58/2024/QH15 taking effect from January 1, 2025, replacing the 2019 Public Investment Law. The new law supplements many regulations on the management and use of ODA capital and preferential loans, and assigns the Government to provide detailed instructions on a number of important contents.

On that basis, Decree 242/2025/ND-CP was issued to inherit and amend previous regulations in Decree 114/2021/ND-CP and Decree 20/2023/ND-CP; perfect the legal framework in line with the Constitution, the 2024 Law on Public Investment and related laws; reduce and simplify procedures, promote decentralization and delegation of power; remove obstacles in project implementation and ensure harmony with the practices and processes of development partners, thereby improving the efficiency of using foreign capital for sustainable development.

Ms. Sibylle Bachmann - Head of Development Cooperation Agency (Swiss Embassy) spoke at the workshop. Photo: Duc Minh.

Decree 242/2025/ND-CP focuses on three major groups of solutions. First, simplifying administrative procedures, abolishing many unnecessary intermediate approval and appraisal regulations for ODA and preferential loan projects; shortening the procedure for adjusting project documents, only consulting the Ministry of Finance when adjustments increase capital significantly; simplifying the process of receiving loans, assigning capital plans, using surplus capital and selecting serving banks; significantly reducing cases of having to adjust investment policies, helping to speed up project progress.

Next is to promote decentralization, delegation of authority, and delegation of 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; decentralize to competent governing bodies the decision on the use of surplus capital and project adjustments of state-owned enterprises that re-borrow ODA capital and preferential loans.

In addition, the Decree also improves mechanisms and removes obstacles such as clarifying regulations on state-owned enterprises using ODA capital 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; having transitional provisions for targeted budget support; supplementing decentralization of budget expenditures for science, technology, innovation and digital transformation; allowing capital withdrawal in the electronic environment, in line with the digital transformation trend and donor requirements.

With the above solutions, Decree 242/2025/ND-CP is expected to enhance the initiative and responsibility of ministries, branches and localities; improve the efficiency of using ODA capital and preferential loans; save time and costs in project management; meet the requirements of the 2024 Law on Public Investment and ensure the consistency of the legal system, thereby creating a transparent, open and favorable legal environment for attracting foreign capital, contributing to promoting socio-economic development and accelerating the progress of key national programs and projects.

The workshop to disseminate Decree 242/2025/ND-CP has contributed to raising awareness and unifying understanding and implementation methods for relevant ministries, branches, localities, agencies, organizations and enterprises. The Ministry of Finance affirmed that it will continue to accompany, guide and promptly remove difficulties and obstacles, ensuring that the Decree soon takes effect, contributing to the country's rapid and sustainable development.

Source: https://baodautu.vn/thao-go-vuong-mac-nang-cao-hieu-qua-su-dung-von-oda-va-vay-uu-dai-d394251.html