Oda

So far, only four out of 62 provinces/cities in Vietnam recorded an ODA disbursement rate of over 70%.

The disbursement progress of official development assistance (ODA) funds in Vietnam in the first eleven months of 2020 reached a modest 41% of the year’s estimate, so fulfilling this year disbursement target would be an uphill task with only one month left.

Director of the Department of Debt Management and External Finance Truong Hung Long.

“So far, only four out of 62 provinces/cities in Vietnam recorded an ODA disbursement rate of over 70%, namely Hanoi, Binh Dinh, Tay Ninh, and Ba Ria – Vung Tau,” noted Director of the Department of Debt Management and External Finance Truong Hung Long under the Ministry of Finance (MoF) at a conference discussing solution to boost the disbursement progress of ODA funds in the last month of 2020 on December 7.

Mr. Long said the progress in the 11-month period showed significant improvements compared to that  in the first half of the year, thanks to strong efforts from the government and local authorities.

“The government has set up seven task forces supervising disbursement progress at government agencies and provinces/cities,” Mr. Long added.

The progress, however, slowed down in the past two months, partly because the government shifted its focus on dealing with natural disasters in the central region, he said.

At the current state, it is highly likely that many provinces/cities would fail to live up to their promises to Prime Minister Nguyen Xuan Phuc, Mr. Long stated, adding the majority of them has pledged to reach the disbursement rate of 90% or higher.

The MoF representative attributed delay in site clearance process to such a low disbursement rate, while there is a lack of responsibilities from project owners and other related parties.

Other issues include the complicated procedures in implementing public projects, contractors’ limited capacity and inefficient cooperation between locality and central agencies, he asserted.

As public investment is a key measure to boost economic growth during the Covid-19 pandemic, a faster disbursement progress of public funds, including ODA, is essential, stated Mr. Long, adding this also proves Vietnam’s ability and responsibility in utilizing funds in the eyes of investors and donors.

The disbursed amount of public funds as of October stood at VND321.5 trillion (US$13.8 billion) equivalent to 68.3% of the target set by Prime Minister Nguyen Xuan Phuc which is VND470.6 trillion (US$20.32 billion).

Hanoi has been implementing a number of measures since the beginning of the year to speed up disbursement of public investment funds, including ODA sources, said a Hanoi leader.

As of end-June, the Hanoi city government has disbursed VND1.55 trillion (US$66.35 million) worth of official development assistance (ODA) loans, meeting 29.7% of the year’s target, according to the city’s deputy mayor Nguyen Doan Toan.

Vice Chairman of the Hanoi People’s Committee Nguyen Doan Toan.

In 2020, the government allowed Hanoi to disburse VND40.67 trillion (US$1.74 billion) for capital expenditure, of which VND3.29 trillion (US$140.82 million) came from ODA loans, Toan informed a conference on June 25.

In May, Hanoi adjusted the investment plan and revised the capital expenditure target to VND44.91 trillion (US$1.92 billion). Of the amount, the city disbursed VND8.12 trillion (US$347.52 million) in the first five months, or 18.1% of the total.

To speed up disbursement of public investment funds, including ODA, Hanoi has been implementing a number of measures since the beginning of the year, including a review of the existing legislation, specifying responsibilities of local agencies, among others, Toan said.

Toan, however, points out some difficulties in implementing a number of ODA-funded projects, such as the Nam Thang Long–Tran Hung Dao section of urban railway line No.2, which requires additional capital, and the unfinished planning of underground station C9 near Hoan Kiem Lake.

Additionally, the Nhon – Hanoi Station section of this urban railway project faces obstacle in advanced payment procedures for package No.9, Toan said, attributing the issue to the ongoing negotiations on an additional loan of EUR20 million (US$22.44 million) from the French government.

Public investment is considered Hanoi’s top priority to ensure economic recovery in the post Covid-19 pandemic.

Hanoi’s Party chief Vuong Dinh Hue suggested that the city should set up a tasks force with the aim of speeding up the disbursement progress, and each process must be tied to individuals’ responsibility.

Building a dyke in Tien Giang province (Illustrative photo: VNA)

Hanoi (VNA) – The disbursement of official development assistance (ODA) at the Ministry of Agriculture and Rural Development (MARD) this year was estimated at 718.3 billion VND (31.33 million USD) as of May 31, or 25.2 percent of the target.

The ministry has attempted to remove bottlenecks in each project and speed up the process.

Some projects have seen adjustments to policies and loan agreements resulting in implementation and capital disbursement, in particular Sustainable Agricultural Transformation (VnSAT) and the Forest Sector Modernisation and Coastal Resilience Enhancement Project (FMCR).

The ravages of COVID-19 have also been an obstacle to the importation of machinery and equipment and the hiring of foreign consultants and contractors.

Most forestry projects require large amounts of time for training stakeholders, according to acting head of the Management Board for Forestry Projects Do Quang Tung.

Forestation is also hampered by COVID-19, he noted.

To speed up disbursement in ODA projects, MARD has asked relevant agencies to report to the Prime Minister on reciprocal capital replacing foreign capital for value-added tax payments.

Close to 2.85 trillion VND in foreign capital has been allocated to MARD in 2021, which has been distributed to 16 of its projects since the end of last year./.

Illustrative photo (Source: VNA)

Hanoi – Only 7.5 percent of official development assistance (ODA) and foreign loans have been disbursed since the beginning of the year according to the Ministry of Finance (MoF).

This rate is too low, Deputy Minister Tran Xuan Ha told a June 11 meeting between ministries and sectors on disbursement.

He proposed that ministries, sectors, and project owners adopt more drastic measures to complete their tasks.

Truong Hung Long, director of the ministry’s Debt Management and External Finance Department, cited data from ministries and sectors in saying that, as of June 10, only 1.25 trillion VND (54.6 million USD) worth of ODA and foreign loans had been disbursed, equivalent to 7.53 percent of the assigned estimate.

Only five out of 13 ministries and sectors have disbursed public investment from ODA and foreign loans this year.

The MoF said the partial completion of investment procedures for investment projects has resulted in slow disbursement, together with the COVID-19 pandemic.

Many projects that have been allocated capital and completed investment procedures, meanwhile, have been slow in site clearance and resettlement.

To fulfil disbursement plans, Long stressed the need for synchronous and drastic measures in the entire political system, the Government, ministries, sectors, and localities.

It is necessary to review the detailed allocation of estimated capital to each project, ensure the progress and disbursement needs of each project, remove obstacles and difficulties in project implementation and disbursement, and speed up disbursement for potential projects and those that have completed investment procedures, bidding, and contract approval.

The MoF also suggested that the Ministry of Planning and Investment coordinate with relevant agencies in reviewing and evaluating public disbursement in the past, clearly identifying any difficulties and obstacles and proposing solutions to address them.

The disbursed amount of public investment funded by ODA in localities in the first five months of 2021 stood at over VND1.1 trillion ($47.9 million), equivalent to just 1.73 percent of the year’s target, according to the Ministry of Finance.