Vietnam Needs $40B ODA, Soft Loans for Development Projects by 2020

Vietnam needs an estimated $39.5 billion in official development assistance (ODA) and soft loans for development projects in the 2016-2020 period, according to reports of ministries, agencies and localities. The funding will focus on the transport, urban development, agriculture and rural development, environment, education and training, health, science and technology sectors. Total ODA disbursement is forecast at $25 billion-$30 billion or $5 billion-$6 billion per year during the period, up 14% compared to the figures of the 2011-2015 period and accounting around 55%-56% of total investment mobilized from the non-state sector. Meanwhile, undisbursed ODA for programs and projects signed in the 2011-2015 period totaled $22 billion, mostly from six development banks, thus Vietnam needs to focus on quickening these programs and projects in the 2016-2020 period. Besides, the country also must build policies and solutions on attracting, managing and effectively use the funding. Under the a plan on using and managing ODA and soft loans in the 2016-2020 period approved by the prime minister, the funding will prioritize infrastructure, human resource, climate change, improvement of state management, science-technology research, environmental protection and green growth and public-private partnership (PPP) projects. The prime minister asked agencies to tighten control over inspection, evaluation of ODA and soft loans use in order to ensure effectiveness of programs and projects and strictly handle wrongdoings and corruption. Vietnam needs to boost attracting foreign direct investment (FDI) and foreign indirect investment (FII) in the context that ODA is falling as Vietnam has become a middle-income nation, said Nguyen Mai, chairman of the Vietnam Association of Foreign Invested Enterprises. (baodautu.vn Feb 18, Hanoi Moi Feb 19 p7, An Ninh Thu Do Feb 19)