Construction workers at the metro line 1 running from Ben Thanh market to Suoi Tien park in HCM City (Photo: VNA) Chief Representative of the Japan International Cooperation Agency (JICA) Vietnam Office Tetsuo Konaka has urged the Government of Vietnam to continue scrutinizing the process of allocating funds for official development assistance (ODA) projects. Konaka made the request at an annual press conference of JICA in Hanoi on May 10 given the late payment of some ODA-funded projects, including the urban railway line No.1 in the southern economic hub of Ho Chi Minh City with slow disbursement of ODA loans worth up to 270 million JPY (2.4 million USD) estimated at the end of March 2018. The JICA official pointed out the cause of the problem, which lies in the government’s policy of increasing public debt control at a higher level. In a Resolution adopted in 2012, the Vietnamese National Assembly decided to keep the public debt ceiling at 65 percent of the country’s … [Read more...] about JICA urges Vietnam to address late payment for ODA-funded projects
Oda
Private firms may access ODA
Private businesses can borrow capital from official development assistance (ODA) and preferential loans from foreign donors.— Photo vneconomy.vn Private businesses can borrow capital from official development assistance (ODA) and preferential loans from foreign donors. This recommendation is part of a draft decree on the management and use of ODA and preferential loans issued by the Ministry of Planning and Investment (MPI). It has been published to get the feedback of the public and relevant agencies. If the draft decree is approved by the Government, private enterprises will be able to access and use ODA and preferential loans within the lending limits, which are allowed for other domestic and financial institutions, to carry out activities in accordance with international treaties and agreements on ODA capital and preferential loans and in compliance with the lending process of financial and credit institutions. The private enterprises will also be able to participate as a … [Read more...] about Private firms may access ODA
ODA projects to be inspected
The Ministry of Planning and Investment will carry out an inspection into 2,600 ODA projects set up during 1993-2017 period. ODA projects to be inspected The international agencies resumed funding to Vietnam in 1993 and in 2017, the World Bank cut preferential ODA for Vietnam after it became a lower middle income country. The ODA loans to Vietnam already decreased sharply since 2015. Vietnam is currently paying higher interest for ODA loans. The Ministry of Planning and Investment said they would review the impacts on society, quality and the operation of completed and on-going projects. They will also review the disbursement process, the amount of remaining work and propose solutions to any existing problems. From 1993 to 2017, Vietnam had 2,594 ODA projects of which 1,300 were invested by ministries and 1,197 were invested by local authorities, state-owned firms and banks. The majority of the projects were invested in big cities including Hanoi, Danang and HCM City. … [Read more...] about ODA projects to be inspected
PM: ODA is important to Vietnam’s development
Prime Minister Nguyen Xuan Phuc chairs a meeting on ODA management At a meeting on ODA capital management with some ministries and sectors, the Prime Minister stressed the need to strengthen management and improve the use of ODA loans, review and eliminate unnecessary expenses in ODA projects such as car purchasing. Mr. Phuc said ODA projects and agreements signed before 2017 need to abide by Resolution 49 of the National Assembly. The Prime Minister ordered ministries and State agencies to cut above-the-line expenditures and only spend the new ODA funds on development investment. He assigned the Ministry of Finance to make clear of the expenditures and soon proposed to the government for approval. … [Read more...] about PM: ODA is important to Vietnam’s development
PM asks to cut above-the-line expenditures in ODA projects
Prime Minister Nguyen Xuan Phuc speaks at the meeting. (Source: vov.vn) Hanoi (VNA) – Prime Minister Nguyen Xuan Phuc ordered ministries and State agencies to cut above-the-line expenditures and only spend the new ODA funds on development investment during a meeting on March 8. Chaired by the PM, the meeting was also attended by Deputy PM and Foreign Minister Pham Binh Minh and Deputy PM Vuong Dinh Hue. It gathered several relevant ministries and State agencies to discuss the management of Vietnam’s ODA and foreign soft loans. Attendees to the event agreed that ODA and foreign soft loans should be only used for development investment and not spent on above-the-line costs like purchases of cars. This principle needs to be applied throughout the development of a project, from the phase of proposal delivery, negotiations, to the signing and implementation of contract. However, there is a lack of legal definitions to clarify the differences between development … [Read more...] about PM asks to cut above-the-line expenditures in ODA projects
Vietnam plans to speed up ODA disbursement
Vietnam is speeding up process to disburse USD2.15bn in ODA in 2016 as the World Bank and Asian Development Bank will stop providing ODA to the country. The World Bank and Asian Development Bank will stop providing ODA to Vietnam The Department of Debt Management and External Finance under the Ministry of Finance reported that by the end of 2015, the amount of registered ODA that has not been disbursed had reached USD22bn. Hoang Hai, deputy head of the Department of Debt Management and External Finance said they had been co-operating with the Ministry of Planning and Investment to speed up the disbursement process. "We’ve been listening to local authorities and investors to understand their problems," he said. "The most important task is to simplify administrative processes so that we'll have a clear financial mechanism for it when the project is still only in its concept stages. When the project is approved, its capital can be disbursed immediately." This way, Vietnam … [Read more...] about Vietnam plans to speed up ODA disbursement
Slow disbursements make ODA projects less efficient
Slow disbursements make ODA projects less efficientVan Nam By Van Nam - The Saigon Times Daily HCMC – The HCMC government said slow capital disbursements have made inroads into the efficiency of the projects funded by official assistance development (ODA) in the southern city. The city has 22 ODA-funded projects with total capital of nearly VND120 trillion, according to the city government’s report on limitations in attracting, managing and using ODA loans sent to the Government Office early this month. Of which, three projects have already been complete and 19 others are under construction. The ODA loans for these projects total nearly VND98.5 trillion and the city’s reciprocal capital is VND21.36 trillion. The city pointed out a host of difficulties in implementing ODA projects, including frequent design adjustments and prolonged implementation. These have led to higher costs for project supervision and management and more spending from the budget. The city … [Read more...] about Slow disbursements make ODA projects less efficient
German ambassador projects high ODA for Vietnam
German ambassador projects high ODA for VietnamKinh Luan By Kinh Luan - The Saigon Times Daily HCMC – Germany’s official development assistance (ODA) for Vietnam in the next two years will likely be the same as in 2012-2013 at 289 million euros, said Jutta Frasch, German ambassador to Vietnam. Speaking during her three-day field trip to Germany-funded projects in Vietnam on Thursday, the German diplomat said the success of projects in Vietnam would result in a continued flow of high ODA for Vietnam. It is not until July that the two governments will meet to discuss the cooperation programs for the next two years, but given the success of projects funded by Germany’s ODA in southern localities, Germany will maintain its ODA for Vietnam, she said. Her field trip was aimed to evaluate the success of Germany-funded projects in the country, including the salinity-intruded forest conservation project worth 8.6 million euros in Bac Lieu and Soc Trang. The ambassador also … [Read more...] about German ambassador projects high ODA for Vietnam
ADB wants ODA disbursement accelerated
ADB wants ODA disbursement acceleratedBy Cong Thanh - The Saigon Times DailyHANOI - The Asian Development Bank (ADB) is asking Vietnam to step up the slow-paced disbursement of its official assistance development (ODA) capital.The bank has told the Ministry of Planning and Investment (MPI) that Vietnam has been lagging in ODA disbursement.However, the Vietnam portfolio has lagged behind in contract awards and disbursement – the two important financial indicators of project progress. Laos with a small portfolio size had the highest disbursement ratio, at 76.79%, followed by Indonesia (50.75%) and the Philippines (35.4%). Vietnam average of 16.14% was well below the ADB's regional 22.84% average.Januar Hakim, an ADB representative in Vietnam, said insufficient counterpart funding for several projects was a worry, notably in the transport areas such as Noi Bai-Lao Cai and Ben Luc-Long Thanh expressways and agriculture/rural development sectors.“Estimated shortage of … [Read more...] about ADB wants ODA disbursement accelerated
Suspected ODA misuse to be made clear next week
Suspected ODA misuse to be made clear next weekBy Chien Thang - The Saigon Times DailyHANOI – The Danish Embassy in Vietnam on Wednesday met with representatives of three ODA-funded projects to clarify the case of alleged capital misuse and the preliminary conclusion will be announced on May 15. In response to rumors about ODA misuse at four research projects on climate change in Vietnam, the Danish Embassy has hired PriceWaterhouseCoopers (PWC) to audit these projects, which received Denmark’s ODA from October 2011.The frauds detected by PWC include use of consultancies for individual benefits, overcharging of internal facilities and cash deficits compared to the balance in the cash book and ‘all violations were committed by the Vietnamese side’, according to PWC’s auditing report covered on local media.The four Danish-funded projects were found to misuse a total of VND11.4 billion, with the largest amount of misused money at one project totaling VND5.4 … [Read more...] about Suspected ODA misuse to be made clear next week