ODA public investment: "Capital hungry" disbursement and disproportionate efforts

"Sluggish" under 20%

As of October 14, the disbursement rate of public investment from foreign capital sources of ministries, branches and localities only reached 18.68% of the plan while the 2025 fiscal year is entering its final months.

Of the total 108 projects/sub-projects assigned capital plans, only 72 have disbursed funds, showing that a significant portion of the projects have yet to be launched or implemented effectively. (Photo: BTC/Vietnam+)

In the context of Vietnam setting an ambitious economic growth target of over 8% for 2025, the problem of disbursing public investment capital, especially official development assistance (ODA) capital, continues to be a major challenge. Although the Government and the Prime Minister have issued a series of resolutions and directives, along with the Ministry of Finance regularly urging and guiding, the results achieved are still "modest" and put considerable pressure on the overall development goal.

According to the Ministry of Finance, completing the task of disbursing public investment capital in 2025 is a key factor, not only contributing to promoting economic growth to achieve the set target but also ensuring the disbursement target of the general plan. However, the current situation shows a picture with many dark colors, requiring analysis of the causes and urgent and long-term solutions.

Data from the Ministry of Finance, compiled from reports of ministries, branches, central and local governments and the TABMIS system, shows that as of October 14, the disbursement rate of public investment from foreign capital sources of ministries, branches and localities has only reached 18.68% of the capital plan assigned by the Prime Minister . This is a very low number when the 2025 fiscal year is entering its final months.

Notably, out of a total of 108 projects/sub-projects assigned capital plans, only 72 projects/sub-projects have disbursed, showing that a significant portion of the projects have yet to be launched or implemented effectively. More specifically, there are 5 ministries, branches and localities that have yet to disburse any foreign public investment capital this year, including the Ministry of Foreign Affairs, Tay Ninh province, Dong Nai province, Hung Yen province and Lai Chau province.

In addition, the rare bright spots that recorded a disbursement rate of over 50% were Hanoi National University, Ho Chi Minh City National University, Dien Bien and Ninh Binh provinces. The large difference in disbursement rates between these units not only reflects different implementation capacity but also raises questions about the ability to resolve specific obstacles in each location.

Since the beginning of the year, many legal problems have been resolved through the promulgation of new policies such as Law No. 90/2025/QH15 and Decree No. 242/2025/ND-CP - with the goal of increasing decentralization, simplifying procedures and perfecting the legal corridor.

Regarding disbursement procedures, Mr. Vu Hoang Nam, Deputy Director of the Department of Debt Management and Foreign Economic Relations, Ministry of Finance, said that the process of receiving documents and processing withdrawal applications ensures the shortest time limit (one working day for direct payment applications). To date, out of 557 received withdrawal applications, the Ministry of Finance has processed 549 sets and issued an official dispatch requesting clarification and supplementation for 8 sets of documents.

Mr. Vu Hoang Nam said that out of 557 received capital withdrawal dossiers, the Ministry of Finance has processed 549 sets and sent an official dispatch requesting clarification and supplementation for 8 sets of dossiers. (Photo: BTC/Vietnam+)

"Vortex" of procedures and capacity challenges

At the Conference on the disbursement of foreign capital public investment in the last months of 2025, measures to increase disbursement in the last months of 2025 and orientations for implementing the 2026 plan, organized by the Ministry of Finance on October 15, localities, ministries and branches clarified the specific causes leading to the sluggish situation. These "bottlenecks" are not only in one stage but appear in many stages of the project life cycle.

A representative of Hanoi city said that as of September 30, the city's ODA disbursement value reached VND822 billion, equivalent to 33.02% of the 2025 plan (VND2,489 billion). Although this rate is higher than the national average, Hanoi is still facing many major obstacles in key projects using ODA capital, such as the Nhon - Hanoi Station Urban Railway Project, the Nam Thang Long - Tran Hung Dao Urban Railway Project, the Yen Xa Wastewater Treatment System Project, and the Hanoi Station - Hoang Mai Urban Railway Project. Therefore, Hanoi estimates that by January 31, 2026, it will only strive to disburse about VND1,415 billion of the 2025 ODA plan, equivalent to 56.87% of the plan.

Mr. Le Trung Hieu, Deputy Director of Hanoi Department of Finance, said that Hanoi is still facing many major problems in key projects using ODA capital. (Photo: BTC/Vietnam+)

To resolve the problems, Hanoi city representatives proposed many options to use the city budget to make advance payments for ODA capital items while waiting for the signing of the Loan Agreement for the Yen Xa wastewater treatment project; Allowing the use of ODA capital and preferential loans for urban railway line No. 3.2 (Hanoi station - Hoang Mai). Hanoi city also proposed a similar option to ensure the progress of implementation for the Nam Thang Long - Tran Hung Dao urban railway project. In addition, Hanoi also proposed the Ministry of Finance to report to the Government to allow the adjustment of the 2025 ODA plan for a number of projects and at the same time speed up the negotiation and signing of the Loan Agreement in a shortened order.

Similarly, the representative of the Ministry of Health frankly shared about the low disbursement situation of only 1.5% in 2025 for two major projects. The subjective reason for the slow disbursement of these two projects is due to the investor's capacity not being able to meet the requirements. Objectively, the reason is procedural problems due to having to comply with the regulations of both the donor and Vietnam. For example, waiting for the donor's no-objection letter in some procedural steps during the bidding process...

This highlights the double burden that developers face in meeting domestic regulations while also complying with complex sponsor terms, causing significant delays.

Accordingly, the representative of the Ministry of Health proposed that the Ministry of Finance continue to accompany and work directly with the investor to resolve specific problems.

Not only Hanoi or the Ministry of Health, reports from many localities such as Dong Nai, Hung Yen, Tay Ninh, Lai Chau, Ha Tinh ... also show common problems. These are issues related to legal procedures, especially site clearance (one of the biggest obstacles) or delays in bidding and contract signing. In addition, projects often have to carry out procedures to adjust investment policies, adjust projects, adjust loan agreements, and adjust capital plans, leading to a waste of time. The delay in receiving no objection from donors to bidding documents or documents related to Loan Agreement amendments is also a common cause. Some special cases arise due to the merger of localities, conversion to two-level government, requiring the re-implementation of related procedures with donors, creating additional administrative barriers.

Mr. Duong Duc Thien, Deputy Director of the Department of Planning and Finance, Ministry of Health, said that the reason for the slow disbursement of these two projects is subjectively due to the investor's capacity not meeting the requirements. (Photo: BTC/Vietnam+)

Sprint

2025 is the last year of implementing the 5-year Socio-Economic Development Plan (2021-2025), this is an important year in creating a breakthrough and socio-economic development and the Medium-Term Public Investment Plan for the period 2021-2025. Therefore, accelerating the progress of implementation and disbursement of public investment capital is of great significance, contributing directly to promoting domestically produced goods, developing infrastructure, removing bottlenecks for development, helping to develop the economy quickly and sustainably. Therefore, the Ministry of Finance and ministries and branches are closely monitoring and resolutely implementing solutions to accelerate the disbursement of public investment capital, striving to achieve a disbursement rate of 100% of the capital plan.

Faced with the above challenges, the Ministry of Finance has proposed a synchronous solution roadmap, combining urgent measures for the last months of 2025 and fundamental orientations for the plan for 2026 and the following years.

For the last months of 2025, the Ministry of Finance focuses on action-oriented and drastic solutions. Specifically, ministries, branches and localities are required to accelerate investment procedures, complete project legal documents; proactively coordinate with sponsors to remove obstacles; strictly control progress, promptly report arising issues. Most importantly, focus on disbursing eligible projects, in order to complete the target of disbursing 100% of the capital plan in 2025.

Deputy Minister of Finance Tran Quoc Phuong especially emphasized the focus and urgency of urging and promoting the disbursement of public investment capital, especially ODA capital, through three main groups of solutions, namely solutions on implementation organization, solutions on procedures, and solutions on payment.

Deputy Minister of Finance Tran Quoc Phuong especially emphasized the urgent need to urge and promote the disbursement of public investment capital, especially ODA capital. (Photo: BTC/Vietnam+)

Regarding the implementation orientation of the 2026 plan, the Ministry of Finance has proposed a long-term vision to solve problems from the root. Specifically, project management agencies and project owners need to carefully review the project implementation capacity when developing capital plans, especially ODA projects, to determine appropriate numbers. Avoid making plans that are not close to reality, leading to having to adjust the plan in the middle of the year. The plan must be made accurately from the beginning, ensuring that it is close to reality and closely coordinated with the Ministry of Finance for synthesis and reporting.

In addition, the Ministry of Finance also recommends prioritizing capital allocation for projects that end within the year, projects that are eligible for capital allocation, transitional projects, urgent, effective projects with the ability to disburse quickly. Minimizing project cancellation and transferring resources to the following year is an important requirement. Especially for foreign capital, the planning arrangement must be consistent with the content of the Loan Agreement, commitments with the sponsor, the project's financial mechanism and implementation progress. Prioritizing adequate capital allocation for projects that end the Agreement, loan agreement, foreign aid in 2026 and are not likely to be extended.

In order to enhance the capacity of localities, the Ministry of Finance said it will continue to organize conferences, seminars, and training courses to disseminate and thoroughly understand new regulations, and support localities in the management and disbursement of ODA capital. At the same time, the Ministry is studying a separate fund model to receive and disburse ODA loans with the expectation of ensuring progress and increasing transparency for donors, creating a solid foundation for the management and effective use of this important capital source in the future./.

Source: https://baolangson.vn/dau-tu-cong-nguon-oda-giai-ngan-doi-von-va-nhung-no-luc-chua-tuong-xung-5061995.html