Dec 17, 2021 / 16:36

Vietnam set to receive US$23 billion in ODA for 2021-2025

The ODA would help realize the Government’s vision of ensuring inclusive growth by accelerating the development level of poor provinces/cities that otherwise would not be able to mobilize domestic funds.

The official development assistance (ODA) from international donors for Vietnam in the 2021-2025 period is estimated at VND527 trillion (US$23 billion).

 The elevated Ring Road No.3 in Hanoi. Photo: Pham Hung

The figure was revealed in the Government’s decision No.2109/QD-TTg signed off by Deputy Prime Minister Pham Binh Minh on the orientation and utilization of ODA and concessional loans from foreign donors during the 2021-2025 period.

Upon breaking down, VND305 trillion ($13.3 billion) would be allocated to projects at the national level, and the remaining VND222 trillion ($9.7 billion) in on-lending to provinces/cities.

Under the decision, the priorities for ODA spending would be on socio-economic infrastructure development projects; enhancing capabilities in drafting legislation, policies, and reform; mitigating impacts from natural disasters and adapting to climate change; social welfare; and preparing for projects that could further increase the concessional levels in future borrowing.

 Among priorities, the Government expects to allocate ODA funds for healthcare, education, vocational training, climate change, environmental protection, and essential economic infrastructure with a low possibility of capital return.

Based on the actual situation, ODA funds could further be spent on addressing natural emergencies and promoting green growth, innovation.

The Government’s decision also noted the ODA would be allocated based on economic zones, for which both non-refundable and borrowed ODA is set to provide to socio-economic backward localities.

The move is in line with the Government’s vision of ensuring inclusive growth by accelerating the development level of poor provinces/cities that otherwise would not be able to mobilize domestic funds.

A part of the ODA would also be used to finance projects addressing social issues during the urbanization process and strengthening provincial linkages in the North West, Central Highlands, and Mekong delta for greater economic development.

Since 1993, Vietnam has mobilized over $80 billion in ODA and preferential loans, making the country one of the largest ODA recipients globally.

Investment capital to Hanoi in 2021 is estimated at VND410.1 trillion, down 0.8% against 2020, including VND140.9 trillion from the state budget, down 0.6%, VND218.6 trillion from private sources, down 3.3%, and VND50.6 trillion of foreign direct investment, equivalent to an increase of 10.6%.