By the end of 2025, Vietnam can mobilize an additional 370 million USD in ODA capital.

Can Tho Bridge is the cable-stayed bridge with the longest main span in Southeast Asia (main span length is 550m), built with official development assistance (ODA) from the Japanese Government and counterpart capital from the Vietnamese Government. (Photo: Tuan Anh/VNA)

According to the Ministry of Finance , in the 2021-2025 period, Vietnam will mobilize an average of 800 million to 1 billion USD in ODA capital and preferential loans each year, except for 2022 when there was a significant decrease due to the impact of the COVID-19 pandemic.

In the first 8 months of 2025, Vietnam has mobilized nearly 450 million USD in ODA loans and foreign preferential loans and is expected to mobilize about 370 million USD more from now until the end of 2025.

In general, in the 2021-2025 period, the disbursement results of foreign capital public investment capital were much lower than the assigned capital plan. The total ODA disbursement for the entire 2021-2024 period reached about VND 66,528 billion, equal to 22% of the total public investment capital plan assigned at the beginning of the period and equal to 44.9% of the total capital plan assigned by the Prime Minister after adjustment.

In the first 8 months of 2025, central and local agencies disbursed VND 3,592.68 billion, equal to 15.34% of the plan assigned by the Prime Minister (VND 23,416.48 billion).

The Ministry of Finance said that Vietnam's demand for mobilizing foreign loans is very large in 2025 and the coming period to implement large projects and works that have a spillover effect and can change the situation. In the 2025-2027 period alone, Vietnam plans to mobilize about VND2,218,300 billion.

To speed up the progress of ODA projects, Vietnam has made efforts to improve the legal corridor, such as eliminating the stage of project proposals that must be submitted to the Prime Minister for approval and is expected to replace it with a stage of loan proposals with simplified information requirements to shorten the time from project preparation to negotiation and signing of international treaties/loan agreements.

At the same time, decentralize the authority and procedures for approving investment policies/project implementation; simplify the procedures for approving policies to implement projects using non-refundable aid capital; reduce procedures for adjusting capital allocation time for ODA projects and preferential loans with the regulation that capital allocation time is equal to the disbursement period (including extension period) in the foreign loan agreement.

In addition, Vietnam also simplifies the capital source regulations when deciding on investment policies, deciding on investment projects using ODA capital, preferential loans, only requiring a letter of interest or a written commitment to funding from a foreign sponsor; allowing independent disbursement of allocated capital plans and re-loan capital plans, without requiring simultaneous disbursement according to the ODA allocation/re-lending ratio; supplementing instructions in case of stopping the use of ODA capital, preferential loans.

In the field of bidding, the Government is authorized to decide on the application of foreign sponsor regulations in cases where foreign sponsor regulations on procurement and bidding are different or not yet regulated by Vietnamese law; at the same time, shorten the implementation time and harmonize procedures with sponsors by regulations allowing pre-bidding activities to be carried out 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 some notable innovations such as: creating a legal corridor for state-owned enterprises to use ODA capital and preferential loans; simplifying the process of receiving non-refundable ODA aid capital.

Accordingly, ODA capital and preferential loans will be provided through four methods including programs, projects, non-projects and budget support. Of which, non-refundable ODA capital will be prioritized for implementing projects on socio-economic infrastructure development, capacity building, prevention and mitigation of natural disasters and epidemics, response to climate change, promotion of green growth, as well as the fields of science, technology, innovation, digital transformation and social security.

In addition, this capital can also be used to prepare investment projects or co-finance projects using preferential loans, in order to increase the preferential nature of the loan.

Meanwhile, ODA loans will focus on programs and projects in the fields of health, education, vocational education, climate change adaptation, environmental protection and essential economic infrastructure that are not capable of direct capital recovery.

A notable new point is that the private sector can also access and use ODA capital and preferential loans through mechanisms such as State capital participation in PPP projects, participation in implementing programs and projects supporting the private sector, or being assigned to perform public investment tasks according to the provisions of the Law on Public Investment.

Decree No. 242/2025/ND-CP takes effect from September 10, 2025, replacing Decree No. 114/2021/ND-CP and Decree No. 20/2023/ND-CP. The issuance of the new decree not only specifies the orientation for attracting, managing and using ODA capital and preferential loans in the coming period, but also demonstrates the Government's determination to reform public financial management, enhance transparency, accountability and improve the efficiency of using international financial resources to serve the country's socio-economic development...

Decree No. 242/2025/ND-CP of the Government on management and use of official development assistance (ODA) and foreign concessional loans. Decree No. 114/2021/ND-CP of the Government on management and use of official development assistance (ODA) and concessional loans from foreign donors. Decree No. 20/2023/ND-CP of the Government: Amending and supplementing a number of articles of Decree No. 114/2021/ND-CP dated December 16, 2021 on management and use of official development assistance (ODA) and concessional loans from foreign donors./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/den-cuoi-nam-2025-viet-nam-co-the-huy-dong-them-khoang-370-trieu-usd-von-oda-post1061765.vnp