Submit to the Government orientations for attracting ODA and preferential loans for the 2026-2030 period in the fourth quarter of 2025

(Chinhphu.vn) – Deputy Prime Minister Bui Thanh Son requested the Ministry of Finance to closely coordinate with Vietnam's development partners to develop orientations for attracting, managing and using ODA capital and preferential loans for the 2026-2030 period, and submit them to the Government for promulgation in the fourth quarter of 2025.

Deputy Prime Minister Bui Thanh Son, Head of the National Steering Committee on ODA and concessional loans, chaired a meeting with Vietnam's development partners - Photo: VGP/Hai Minh

Deputy Prime Minister Bui Thanh Son, Head of the National Steering Committee on ODA and concessional loans, made the above request during a meeting with Vietnam's development partners, held on the afternoon of September 12 at the Government Headquarters.

Attending the meeting were leaders of ministries and agencies that are members of the National Steering Committee on ODA and concessional loans; leaders of six development banks: the World Bank (WB), the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), the Korea Export-Import Bank (KEXIM), the French Development Agency (AFD), and the German Reconstruction Bank (KfW); and representatives from the Embassies of Japan, South Korea, Australia, the European Union, and the United Nations in Vietnam.

Based on the above guidelines, the Deputy Prime Minister instructed the leaders of the Ministry of Finance to periodically organize inter-ministerial working groups with development partners, from the identification of cooperation projects to the preparation and implementation of projects, in order to promptly identify difficulties and obstacles for immediate resolution or report to competent authorities for timely handling, ensuring the progress and effectiveness of projects using foreign loans.

Deputy Prime Minister Bui Thanh Son requested development partners to continue supporting Vietnam in enhancing its capacity from project identification to implementation; to listen to and coordinate with the Vietnamese side to harmonize procedures between the two sides, including internal procedures, capital commitments, and requirements for the level of detail of documentation from donors, in order to accelerate the preparation and implementation of projects.

In the context of Vietnam's recent implementation of a two-tiered government model and the acceleration of decentralization and delegation of power to local authorities, Deputy Prime Minister Bui Thanh Son requested that donors provide non-refundable aid projects to support Vietnamese localities in enhancing their capacity to implement ODA projects and concessional loans.

Deputy Prime Minister Bui Thanh Son requested development partners to continue supporting Vietnam in enhancing its capacity from project identification to implementation - Photo: VGP/Hai Minh

The Deputy Prime Minister also requested that central ministries and agencies provide guidance and training to enhance the capacity of localities in implementing tasks decentralized from the central government to the local level, including the use of ODA and concessional loans.

According to the Ministry of Finance, during the period 2021-2025, Vietnam mobilized an average of 800 million to 1 billion USD in ODA and concessional loans annually, except for 2022 which saw a significant decrease due to the impact of the COVID-19 pandemic.

In the first eight months of 2025, Vietnam mobilized nearly $450 million in ODA loans and concessional foreign loans, and it is expected that an additional $370 million could be mobilized by the end of 2025.

Overall, during the 2021-2025 period, the disbursement of public investment capital from foreign sources was significantly lower than the allocated capital plan. The total ODA disbursement for the entire 2021-2024 period reached approximately VND 66,528 billion, equivalent to 22% of the total public investment capital plan initially allocated and 44.9% of the total capital plan allocated by the Prime Minister after adjustments.

In the first eight months of 2025, central and local agencies disbursed 3,592.68 billion VND, equivalent to 15.34% of the plan assigned by the Prime Minister (which was 23,416.48 billion VND).

The Ministry of Finance stated that Vietnam has a very large need to mobilize foreign loan capital in 2025 and the coming period to implement large-scale projects with a ripple effect and the potential to transform the situation. Specifically, during the period 2025-2027, Vietnam is expected to mobilize approximately 2,218.3 trillion VND.

To expedite the progress of ODA projects, Vietnam has made efforts to improve the legal framework, such as eliminating the requirement for project proposals to be submitted to the Prime Minister for approval and replacing it with a loan proposal stage requiring simplified information, thereby shortening the time from project preparation to negotiation and signing of international treaties/loan agreements.

Simultaneously, the authority and procedures for approving investment policies/project implementation will be decentralized; the procedures for approving the implementation of projects using non-refundable aid will be simplified; and the procedures for adjusting the capital allocation time for ODA projects and preferential loans will be reduced, with the capital allocation time stipulated to be equal to the disbursement period (including extensions) in the foreign loan agreement.

Vietnam has also simplified regulations on capital source appraisal when deciding on investment policies and investment decisions for projects using ODA and concessional loans, requiring only a letter of interest or a commitment to funding from a foreign donor; allowing independent disbursement of allocated capital and re-lending capital plans, without requiring simultaneous disbursement according to the ODA allocation/re-lending ratio; and adding guidance in cases where the use of ODA and concessional loans is discontinued.

In the field of procurement, the Government is empowered to decide on the application of regulations of foreign donors in cases where the foreign donor's regulations on procurement and bidding differ from or are not yet stipulated in Vietnamese law.

Shorten implementation time and harmonize procedures with donors by allowing pre-bidding activities to be conducted before signing international treaties and foreign loan agreements.

Most recently, the Government issued Decree No. 242/2025/ND-CP, replacing Decree No. 114/2021/ND-CP and Decree No. 20/2023/ND-CP, with several notable innovations such as creating a legal framework for state-owned enterprises to use ODA funds and preferential loans; and simplifying the process of receiving non-refundable ODA grants.

The new decree also updates the changes stipulated in the amended Law on Public Investment issued in 2024 (eliminating the project proposal stage, simplifying regulations on capital source appraisal, decentralizing and delegating authority to decide on investment policies and investment decisions for projects using ODA capital and preferential foreign loans, etc.).

With the merger of the Ministry of Planning and Investment and the Ministry of Finance, from March 1, 2025, the Ministry of Finance will become the sole focal agency for state management of ODA and concessional loans.

Regarding public debt management, the Ministry of Finance is finalizing a draft Law amending and supplementing several articles of the Law on Public Debt Management to submit to the Government for presentation to the National Assembly for approval at the National Assembly session in October 2025.

The draft law proposes appropriate amendments aimed at facilitating access to ODA funds and preferential loans for public service units, state-owned enterprises, and subsidiaries of state-owned enterprises, and promoting decentralization and delegation of authority in the process and procedures for managing ODA loans and preferential foreign loans, etc.

To implement Resolution No. 190/2025/QH15 dated February 19, 2025, of the National Assembly, and to ensure continuity in the implementation of projects using ODA loans and preferential foreign loans, the Ministry of Finance submitted to the Prime Minister for promulgation Decision No. 1655/QD-TTg dated August 4, 2025, approving the principle of amending the names of the managing agency and project owner in loan agreements on behalf of the Government with foreign donors after the merger of ministries, ministerial-level agencies, and localities. Accordingly, it authorizes the leaders of the Ministry of Finance to sign documents amending loan agreements on behalf of the Government with donors regarding the adjustment of the names of the managing agency and project owner after the restructuring.

The Ministry of Finance is currently compiling feedback from ministries and localities to provide a basis for discussions with foreign donors on this matter, ensuring continuity and consistency in project implementation.

Regarding the monitoring and management of the disbursement of foreign capital in 2025 for localities after mergers, the Ministry of Finance has sent a document to the People's Committees of provinces and centrally-administered cities urging them to expedite the disbursement of the 2025 public investment plan from foreign capital sources for localities undergoing mergers.

The Ministry of Finance requests that localities urgently stabilize the organizational structure of project management boards using ODA funds and preferential foreign loans, promptly complete procedures for introducing signature samples, registering new account numbers (if necessary), and carrying out procedures for signing supplementary loan agreements to avoid disruptions in the disbursement of foreign funds.

Regarding the adjustment of the relending rate applicable to provinces and centrally-administered cities after mergers, the Ministry of Finance issued Official Letter No. 12976/BTC-QLN dated August 22, 2025, to localities informing them of the specific relending rates for ODA loans and preferential foreign loans of the Government for provinces and centrally-administered cities from July 1, 2025, and applicable to the 2025 budget year.

At the meeting, representatives of development partners highly appreciated Vietnam's development achievements and recent strong reforms; they also praised the Vietnamese government's proactive approach in organizing dialogues with development partners to foster mutual understanding and closer ties; and affirmed their readiness to accompany and support Vietnam in its upcoming development phase.

Hai Minh

Source: https://baochinhphu.vn/trinh-chinh-phu-dinh-huong-thu-hut-oda-von-vay-uu-dai-giai-doan-2026-2030-trong-quy-iv-2025-102250912190339379.htm