Vietnam gov’t prioritizes allocation of state fund for ODA projects in 2021

The Vietnamese government gives priority to allocating sufficient state fund for projects financed with official development assistance (ODA) or preferential loans in 2021, according to the Ministry of Planning and Investment (MPI).

Vietnam government would prioritize allocation of state fund for ODA projects in 2021.

The move would help to speed up the completion of projects under the mid-term public investment plan for the 2016 – 2020 period that can be extended until 2025, stated the MPI’s document instructing government agencies and provinces and cities in allocating investment funds in 2021.

Additionally, the MPI expected all projects financed by ODA or preferential loans from foreign donors to have sufficient counterpart funds, especially projects that are set to be completed in 2021.

Only when sufficient funding for these projects is ensured, will new projects be launched, stated the MPI. The projects prioritized to be initiated are those that have completed all investment procedures, or are in line with the national strategy of digital transformation, digital economy, aiming to enhance productivity and efficiency of state management process.

Projects in the next line of priority are those in field of transportation to boost provincial connectivity and eventually socio-economic development, as well as those to serve public health, or against natural disasters, among others.

Amid the limited ODA funds and preferential loans, the MPI urged government agencies to tighten the supervision of investment portfolio using these types of financing.

The MPI requested provinces, cities and government agencies to step up efforts in disbursing state funds in 2021, and refrain from transferring funds between projects that could affect the mid-term investment plan for the 2021 – 2025 period.

Public investment is considered a key solution to boost economic growth amid the Covid-19 pandemic, for which the disbursed amount of public funds as of September 30 stood at VND269.2 trillion (US$11.64 billion) equivalent to 57.15% of the target set by Prime Minister Nguyen Xuan Phuc at VND471 trillion (US$20.38 billion).