Based on past performance evaluations and future demand forecasts, the Ministry of Finance (MoF) projects that the total disbursement of Official Development Assistance (ODA) and foreign preferential loans will reach approximately $38.2 billion during the 2026–2030 period.
According to the ministry, foreign borrowing will be managed with a reasonable scale and structure, prioritizing key projects with significant "spillover effects." These funds will specifically target socio-economic infrastructure, climate change adaptation, green transition, and innovation.
The utilization of these loans will be subject to a cautious assessment of efficiency and debt-servicing capacity to ensure national public debt safety. Foreign preferential loans are identified as a vital supplementary source once domestic resources and other more favorable funding options have been fully mobilized.
This information was released on April 20 at a conference regarding Decree No. 119/2026/NĐ-CP. This decree amends and supplements Decree No. 242/2025/NĐ-CP on the management and use of ODA and foreign preferential loans, while outlining the strategic direction for attracting these resources for 2026–2030.
At the event, Director General of the MoF"s Department of Debt Management and External Finance, Nguyen Quoc Phuong, stated that Decree No. 119 was issued to institutionalize the 2025 Law on Public Debt Management, ensuring consistency with the Law on International Treaties and the Law on State Budget.
This legal framework focuses on resolving practical bottlenecks by simplifying approval procedures through a new "loan proposal" mechanism, which is expected to significantly shorten administrative processing times.
Furthermore, the Government will promote decentralization in negotiating, signing, and adjusting loan agreements, while refining financial mechanisms to enhance support for local governments and priority sectors.
These reforms are expected to create a more transparent and streamlined legal environment, improving the efficiency of mobilizing and utilizing foreign capital while increasing the autonomy and accountability of managing agencies during project implementation.- (VNA)
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