Unblocking ODA capital and foreign preferential loans

On September 26, in Hanoi, the Ministry of Finance held a workshop to disseminate Decree No. 242/2025/ND-CP dated September 10, 2025 of the Government on management and use of official development assistance (ODA) and foreign preferential loans.

Conference scene

Speaking at the opening of the workshop, Mr. Nguyen Quoc Phuong, Director of the Department of Debt Management and Foreign Economic Relations, Ministry of Finance said: “This Decree is of special importance because it not only helps to remove bottlenecks in mobilizing ODA capital and preferential loans, but also clearly demonstrates the spirit of reform, institutions and strong policies of the Government, in line with the strategic reform orientation through the “Four Pillars” - four breakthrough Resolutions of the Politburo to help unlock resources and create momentum for Vietnam to enter a new era - an era of development, prosperity and strength of the Vietnamese people”.

Decree No. 242/2025/ND-CP was issued in the context of the Public Investment Law No. 58/2024/QH15 taking effect from January 1, 2025, replacing the 2019 Public Investment Law. The new law has added many regulations on the management and use of ODA capital and preferential loans, and assigned the Government to provide detailed instructions on many important contents.

On that basis, Decree 242/2025/ND-CP inherits and amends Decree No. 114/2021/ND-CP and Decree No. 20/2023/ND-CP; perfects the legal framework, ensures consistency and synchronization with the Constitution, the 2024 Law on Public Investment and related laws; at the same time, reduces and simplifies procedures, promotes decentralization and delegation of powers, and removes difficulties in project implementation. In particular, the new Decree is built in harmony with the practices and processes of development partners, contributing to improving the efficiency of using foreign capital, serving the goal of sustainable national development.

Construction site of the investment project package for the construction of Ring Road 2, section Tan Vu - Hung Dao - Bui Vien street. Photo: PHAM CUONG

Decree No. 242/2025/ND-CP focuses on 3 major groups of solutions:

First of all, simplify administrative procedures: Abolish many unnecessary intermediate approval and appraisal regulations for ODA and preferential loan projects; shorten the procedure for adjusting project documents, only requiring the opinion of the Ministry of Finance in case of adjustments that increase capital significantly; simplify the process of receiving loans, assigning capital plans, using surplus capital, and selecting serving banks; significantly reduce cases of having to adjust investment policies, helping to speed up project progress.

The Decree focuses on promoting decentralization and delegation of power: granting the right to decide on investment policies for group A projects and many projects previously under the Prime Minister's authority to ministries, branches and localities; assigning competent governing bodies to participate in most regional projects, except for some specific fields; decentralizing to competent governing bodies the decision on the use of surplus capital and project adjustments of state-owned enterprises that re-borrow ODA capital and preferential loans.

Finally, perfecting the mechanism and removing obstacles: clarifying regulations on state-owned enterprises using ODA loans and preferential loans, creating favorable conditions for public investment; supplementing regulations on handling assets and equipment handed over by donors, ensuring a transparent legal basis; having transitional provisions for targeted budget support; supplementing regulations on decentralizing budget expenditures for science, technology, innovation and digital transformation, facilitating the development of new fields; allowing capital withdrawal in the electronic environment, in line with the digital transformation trend and donor requirements.

By simplifying procedures, promoting decentralization and supplementing regulations to remove difficulties, Decree No. 242/2025/ND-CP is expected to increase the initiative and responsibility of ministries, branches and localities; improve the efficiency of using ODA capital and preferential loans, contributing to saving time and costs in project management; meet the requirements of the 2024 Law on Public Investment, synchronize with other legal documents, create a more transparent, open and favorable legal environment for attracting foreign capital; contribute to promoting socio-economic development, speeding up the progress of key national programs and projects.

The Ministry of Finance affirmed that it will continue to accompany, guide and promptly remove difficulties and obstacles to ensure that the Decree soon takes effect, contributing to the country's rapid and sustainable development.

PV (synthesis)

Source: https://baohaiphong.vn/khoi-thong-nguon-von-oda-va-vay-uu-dai-nuoc-ngoai-521859.html