The Ministry of Finance and AFD map out ODA priorities for 2026-2030

Nguyen Quoc Phuong, director general of the Department of Debt Management and External Finance. Photo: Duc Minh

The orientation and review meeting took place on June 19, co-chaired by French Ambassador Olivier Brochet, Department of Debt Management and External Finance director general Nguyen Quoc Phuong, and French Development Agency (AFD) Vietnam country director Julien Seillan.

In his opening remarks, director general Nguyen Quoc Phuong stated that the AFD is one of Vietnam's leading development partners, providing steady companionship even during the challenging 2021-2025 period. With seven loan agreements signed out of 42 foreign loan agreements, this reflects the strong alignment between France’s support framework and Vietnam’s actual needs.

"Faced with the goal of achieving double-digit economic growth while promoting green and digital transitions, the government is committed to treating official development assistance and concessional loans as a strategic lever while maximising the efficiency of these resources," he said.

According to Phuong, Vietnam stands at a critical juncture to realise its long-term objectives, including a double-digit economic growth target over the next five years. To achieve this, Vietnam requires massive investment, particularly in key sectors such as digital transformation, green transition, and innovation. The government is committed to enhancing the utilisation efficiency of official development assistance (ODA) funds and expanding international cooperation.

The government has implemented groundbreaking institutional reforms, including the enactment of the amended Law on Public Debt Management – passed in late 2025 – Decree 84/2026/ND-CP, and Decree 119/2026/ND-CP. The country has shifted from a 'project proposal' approach to a 'loan proposal' approach, simplifying procedures and shortening preparation times by approximately one year. The government has also decentralised powers, granting more authority to the Ministry of Finance during negotiations and signings.

The on-lending mechanism has been revamped, expanding to a direct-grant allocation mechanism for public administrative units and local authorities based on their financial capacity. The procedures for receiving non-refundable ODA grants have also been streamlined.

"To ensure that these funds contribute effectively to the 2026-2030 period, the Prime Minister approved the orientation plan in May. Today's meeting aims to discuss this cooperation framework in detail and review specific projects," Phuong said.

Against the backdrop of Vietnam aiming for GDP growth of at least 10 per cent over the next five years, the pressure to mobilise foreign capital has become more urgent than ever. This event marks a strategic step towards reshaping ODA inflows for the 2026-2030 period, focusing on three main pillars: green transition, transport infrastructure, and climate change adaptation.

French Ambassador Olivier Brochet. Photo: Duc Minh

French Ambassador Olivier Brochet proclaimed Vietnam as a cornerstone partner for France in Asia. The Comprehensive Strategic Partnership, upgraded in late 2024, provides the most favourable diplomatic framework for large-scale financial projects.

Ambassador Brochet noted that Vietnam is currently the most active partner in the Just Energy Transition Partnership (JETP). France has committed $573.6 million to this initiative, with over 60 per cent already disbursed. "We are confident that all JETP commitments will be fulfilled before the end of 2028," he said.

According to the ambassador, AFD plays a pivotal role. Over 32 years of operation in Vietnam, the agency has financed more than $3.4 billion through loans and grants. During his visit in 2025, President Macron reaffirmed France's desire to accompany Vietnam into a new era, supporting major investments in energy transition, climate change adaptation, research, and human resource training.

"France greatly appreciates Vietnam’s resolutions and legislative adjustments regarding public debt management. The AFD’s priority areas perfectly align with Vietnam’s goals, such as energy transition, transport, and carbon reduction to achieve Net Zero by 2050," said Brochet.

The AFD has updated its financing strategy to adapt to the new context, focusing on key infrastructure. France's $573.6 million commitment under the JETP framework has seen over 60 per cent implemented since 2022.

Vietnam is currently the most active partner in the JETP and serves as an international model for North-South cooperation against climate change. France will also scale up its support for emission reductions in the transport sector. The AFD has supported Hanoi Metro Line 3 for the past 15 years and is currently assisting in training railway personnel to deploy larger ventures, such as the North-South high-speed railway.

On climate change adaptation, Brochet said AFD will launch several new projects in Dien Bien, Son La, Vinh Long, and other provinces starting from 2026. "Accompanying the Vietnamese people in adapting to climate change is of utmost importance," he added.

Julien Seillan, AFD country director for Vietnam

Echoing this sentiment, AFD country director for Vietnam Julien Seillan said the agency has recently approved its Country Strategy Framework for the 2026-2030 period. "This comes at a golden moment, as the Vietnamese government also issued its Implementation Plan for the Orientation of ODA Utilisation in March," he said.

"This meeting carries profound and unique significance," Seillan added. "Both sides are at a turning point, a time when Vietnam has defined its socioeconomic development orientations up to 2045, while simultaneously approving a new national financing framework for the 2026-2030 period."

"We must make the most of this opportunity to shape our cooperative activities. Financial cooperation is a tangible pillar of our strategic partnership. Every funded project, every agreement signed, and every expert mobilised helps bring this partnership to life," he said.