Vietnam's New Decree Boosts ODA Management Efficiency
The Vietnamese government has issued Decree No.242/2025/ND-CP, a significant move aimed at enhancing transparency and efficiency in managing Official Development Assistance (ODA) and foreign concessional loans. This new framework, introduced on September 10, is expected to unlock international resources for Vietnam's development more effectively.
The decree, Decree 242, simplifies procedures for projects using ODA funds and decentralises decision-making to local authorities. Nguyen Ba Hung, Chief Economist of the Asian Development Bank (ADB) in Vietnam, praised these changes, highlighting the potential acceleration of project preparation with line ministries and executing agencies.
The Ministry of Finance recently held a workshop on October 3 to introduce Decree 242. This move comes as Vietnam is actively pursuing numerous international development aid projects, focusing on infrastructure improvement, green transition, digitalization, and climate adaptation. Between 2015 and 2023, Vietnam received 49.6 billion USD from 80 development partners for over 22,000 projects, reflecting a shift from aid dependence towards selective development financing and regional cooperation.
ODA and foreign concessional loans have been crucial to Vietnam's socioeconomic development over the past 30 years, supporting significant projects like the Can Tho Bridge, My Thuan Bridge, and the Ho Chi Minh City Environmental Improvement Project. However, challenges persist in mobilising, managing, and using these funds, including complex procedures, slow disbursement, lack of coordination, and overlapping mechanisms. Decree 242 aims to address these issues while remaining subject to existing laws, with the government currently amending related regulations for stronger effectiveness control.
Decree 242/2025/ND-CP, with its focus on streamlining procedures and decentralising decision-making, is poised to enhance Vietnam's management of ODA and concessional loans. By doing so, it aims to accelerate development projects and foster a more transparent, efficient framework for unlocking international resources.
Read also:
- Small Business Owners Sound Alarm on Tariff Challenges
- THW Marks 75 Years of Saving Lives at Home and Abroad
- Kazakhstan's National Bank Boosts Currency Sales to $1.4 Trillion in Q4
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
