Vietnam advances reforms in ODA and concessional financing

On April 20 in Hanoi, the Department of Debt Management and External Finance under the Ministry of Finance, in coordination with the Asian Development Bank (ADB), held an in-person and virtual workshop to disseminate Decree No.119/2026/ND-CP, which amends and supplements Decree No.242/2025/ND-CP on the management and use of official development assistance (ODA) and concessional loans.

The event also addressed mobilising, managing and utilising ODA and concessional loans for 2026-2030 under Decision No.441/QD-TTg issued on March 16 by the prime minister.

Participants included representatives of bilateral and multilateral donors, international organisations providing ODA and concessional financing to Vietnam, as well as representatives from relevant ministries, local authorities and project owners.

A representative of the Department of Debt Management and External Finance presents new features of Decree 119 at the workshop

At the workshop, Nguyen Quoc Phuong, director general of the Department of Debt Management and External Finance, said the issuance of Decree 119 represented a concrete step in institutionalising the Party’s directives on improving institutional quality, encouraging decentralisation and accountability, and enhancing the efficiency of public debt management.

“Decree 119 directly addresses key bottlenecks identified in practice, particularly cumbersome and overlapping procedures in negotiating and signing international agreements; delays in appraising and approving borrowing proposals; and limited autonomy and accountability at the local level,” Phuong said.

According to Phuong, Decree 119 focuses on major reforms, including simplifying approval processes and shortening administrative timelines; strengthening decentralisation in negotiating, signing and amending loan agreements; and refining financial mechanisms to enhance support for localities and priority sectors.

The decree also seeks to modernise financial management through the application of IT, and expand the scope of governing agencies in line with practical requirements.

These reforms are expected to create a more transparent and enabling legal environment, improve the efficiency of mobilising and utilising foreign capital, and enhance the accountability of agencies and units in implementing programmes and projects.

Phuong noted that 2026-2030 is a critical phase for implementing the country’s socioeconomic development strategy in line with Party resolutions on rapid and sustainable development, targeting double-digit GDP growth, economic restructuring and strengthened resilience.

“Demand for ODA and concessional financing remains substantial, particularly in strategic infrastructure development; digital transformation and innovation; climate change adaptation and green growth; human resource development and social security,” he said.

Decision No.441/QD-TTg provides a clear and feasible framework for aligning foreign financing with national priorities and the Prime Minister’s orientation on improving resource allocation efficiency.

Accordingly, the attraction and utilisation of ODA and concessional loans in the coming period will focus on mobilising and allocating resources at an appropriate scale and structure to meet development investment needs at national, sectoral and local levels.

Priority will be given to key projects with spillover effects and breakthrough impact, particularly in socioeconomic infrastructure, environmental protection, climate change response, sci-tech, innovation, green transition and digital transformation.

The Ministry of Finance (MoF) expressed appreciation for the cooperation of bilateral and multilateral donors, international organisations and non-governmental organisations in providing financial and non-financial support, which has played a significant role in advancing Vietnam’s development and institutional reforms.

The MoF reaffirmed its commitment to issuing clear implementation guidelines; establishing regular channels to raddress difficulties; and reviewing policy.

Based on an assessment of 2021-2025 and projected demand, total ODA and concessional borrowing for 2026-2030 is estimated at $38.2 billion. Ensuring effective disbursement of this capital poses significant challenges, requiring close coordination among relevant agencies and proactive implementation.

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