Under Prime Ministerial Decision No. 441/QD-TTg, signed by Deputy Prime Minister Bui Thanh Son on March 16, a plan to implement Vietnam’s orientation for mobilizing, managing and utilizing official development assistance (ODA) and foreign concessional loans in the 2026–2030 period has been approved.
The plan aims to ensure sufficient resources for development investment at national, sectoral and local levels through an appropriate scale and structure of ODA and concessional financing, according to a report released on March 18 by the Vietnam News Agency.
Priority will be given to disbursement needs of ongoing and transitional projects from the 2021–2025 period, as well as new projects expected to complete procedures and partially disburse in the 2026–2030 period.
Funding will also be earmarked for major infrastructure works and nationally important projects whose investment modalities and capital sources are yet to be finalized, alongside other public investment programs assigned by competent authorities.
The Government emphasizes proactive, effective cooperation with development partners based on trust, mutual understanding and respect, in order to mobilize non-refundable aid and highly concessional loans. Financing sources will be carefully selected to match Vietnam’s conditions, with a focus on priority sectors, regions and projects, while striving to harmonies procedures between Vietnam and donors.
The preparation, appraisal, negotiation and implementation of ODA-funded programs will be aligned with the country’s socio-economic development strategy, medium-term public investment plan, five-year financial plan and public debt management plan for 2026–2030. These efforts will support breakthroughs in economic growth, innovation-driven development, digital transformation, science and technology, energy security, education and public health, while encouraging stronger participation of the private sector.
The plan also targets fundamental solutions to bottlenecks that have slowed project preparation and implementation. At the same time, it calls for modernizing and digitalizing ODA management in line with international standards to enhance transparency, accountability and oversight, and improve efficiency and processing time.
Regarding orientation, ODA and concessional loans will be prioritized for key programs and projects with strong spillover and transformative impacts, particularly in socio-economic infrastructure.
Such capital will be used strictly for development investment, based on careful assessment of borrowing conditions, feasibility, efficiency, regional balance and public debt safety.
Foreign concessional loans are defined as supplementary resources, to be mobilized after domestic and more favorable funding sources have been utilized. They will be directed to areas where domestic capital or highly concessional ODA is insufficient and private investment remains limited.
Vietnam will priorities funding sources with favorable terms, fewer conditions, flexible procedures and diverse financial instruments, especially those offering technology transfer and technical assistance.
In addition to traditional project-based lending, the country will adopt more flexible financing approaches, including budget support, multi-phase programs and results-based disbursement, combined with international capital market instruments.
To realize these goals, the plan outlines five groups of tasks and solutions, focusing on institutional reform, donor engagement, improved project implementation, innovation in capital mobilization and risk management, and enhanced technology transfer through ODA-funded projects.
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