Private businesses can borrow capital from official development assistance (ODA) and preferential loans from foreign donors. (Photo: vneconomy.vn) Hanoi (VNA) - Private businessescan borrow capital from official development assistance (ODA) and preferentialloans from foreign donors.
This recommendation is part of a draft decreeon the management and use of ODA and preferential loans issued by the Ministryof Planning and Investment (MPI). It has been published to get the feedback ofthe public and relevant agencies.
If the draft decree is approved by theGovernment, private enterprises will be able to access and use ODA andpreferential loans within the lending limits, which are allowed for otherdomestic and financial institutions, to carry out activities in accordance withinternational treaties and agreements on ODA capital and preferential loans andin compliance with the lending process of financial and credit institutions.
The private enterprises will also be able toparticipate as a capital contributor in investment projects under the form ofpublic-private partnerships, which uses ODA funds and preferential loans as theState’s investment capital, as well as borrow ODA through commercial banks.
The draft decree provides a seven-step processfor managing and using ODA and preferential loans. These include mobilisationto borrow capital; building and selecting projects; setting, assessing anddeciding the investment policy of the project; negotiating and signinginternational treaties and agreements on capital; project management andcompletion of projects.
Vietnam has been given financial aid from frommultilateral and bilateral institutions such as World Bank, Asian DevelopmentBank and International Monetary Fund as well as from countries such as Japan,France, Denmark and Canada since 1993. In July 2017, World Bank announced thetermination of ODA for Vietnam; instead, the latter loans were declaredpreferential loans with higher interest rates.
According to MPI’s statistics, by the end of2017, there were 2,591 programmes and projects funded by ODA and preferentialloans. Among them, ministries and sectors have 1,279 projects, localities have1,197 projects and the remaining are projects of banks and Vietnam Television.
The Ministry of Transporthas taken the lead, with 288 ODA programmes and projects. It is followed by theMinistry of Industry and Trade with 152 projects. The Ministry of Agricultureand Rural Development, Ministry of Health and MPI have 272, 132 and 51 projectsand programmes, respectively.-VNA
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