DEPUTY PRIME MINISTER NGUYEN VAN THANG: PRIORITIZE ODA FUNDING FOR LARGE-SCALE, HIGH-IMPACT PROJECTS

Nearly USD 1.7 Billion in New Loan Proposals Approved in the First Half of 2026

According to the Ministry of Finance, Vietnam achieved positive results in mobilizing ODA and concessional foreign loans during the first six months of 2026. The total value of newly approved loan proposals reached approximately USD 1.696 billion. In addition, procedures were completed for the signing of three foreign loan agreements worth nearly USD 586 million.

Despite these achievements, disbursement remains a significant challenge. As of June 15, the disbursement rate of foreign-funded public investment capital had reached only 9.99% of the assigned plan. Although this figure is higher than the same period last year, it remains substantially below the national average disbursement rate. Notably, one central government agency and 13 localities have yet to disburse any of their allocated foreign-funded capital.

Government agencies attributed the slow progress primarily to delays in site clearance, prolonged bidding and contract-signing processes, and lengthy project preparation procedures. Differences between domestic regulations and donor requirements have also created implementation bottlenecks.

Land Clearance Must Precede or Run Parallel to Loan Negotiations

To accelerate project implementation, the Deputy Prime Minister instructed project owners and managing agencies to prioritize land clearance activities, enabling construction to begin as soon as projects are approved. He stressed that agency leaders must take full responsibility before the Government and the Prime Minister for project implementation progress.

For newly proposed projects, land acquisition and clearance should be carried out in parallel with—or even before—the negotiation and signing of loan agreements. This approach would allow construction to commence immediately once financing becomes effective.

Where appropriate, authorities may also consider separating land clearance components from projects financed by foreign loans in order to improve implementation efficiency.

Prioritizing ODA for Large Projects and High-Value Loans

One of the key messages from the meeting was the need to improve the quality and effectiveness of ODA utilization.

The Ministry of Finance was tasked with conducting thorough assessments of proposed ODA loans before submitting them for approval. These evaluations must fully consider project performance, borrowing costs, interest rates, associated expenses, and, most importantly, financial efficiency.

The Deputy Prime Minister directed the Ministry to prioritize ODA resources for large-scale projects, high-value loans, and budget support financing rather than dispersing resources across numerous small projects.

Reviewing Regulations to Remove Bottlenecks

In addition to accelerating disbursement, the Ministry of Finance was instructed to review requests for adjustments to the 2026 capital allocation plans of ministries, agencies, and local authorities. This will enable the reallocation of funds to projects requiring additional capital in accordance with regulations.

The Ministry is also expected to examine provisions in the Law on Public Investment, the State Budget Law, and other related regulations, with a view to reducing procedural barriers that hinder the implementation of foreign-funded public investment projects.

Particular attention will be given to recurring issues involving contractor selection, tax obligations, consulting services, and administrative procedures associated with ODA and concessional foreign loans.

Promptly Resolving Issues with International Donors

The Deputy Prime Minister assigned the Ministry of Finance to work closely with the Ministry of Foreign Affairs in identifying and addressing concerns raised by international development partners and foreign donors.

Issues falling within ministerial authority should be resolved proactively, while matters beyond existing authority must be reported to the Government and the Prime Minister, together with proposed solutions. A comprehensive report is required before June 26.

The Ministry of Finance was also instructed to coordinate with the Government Office in preparing an official directive urging local authorities to accelerate ODA disbursement, with completion targeted by June 20.

Meanwhile, the Ministry of Foreign Affairs was directed to provide detailed information on challenges faced by foreign donors involved in ODA and concessional loan projects before June 20, 2026, and to continue coordinating with relevant agencies to remove obstacles and improve the effectiveness of foreign-funded development programs.