CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Disbursement rate of ODA funds in Vietnam reaches 3.4% of targets in Jan-Jun
Nguyen Tung 12:05, 2019/09/14
Minister of Finance Dinh Tien Dung attributed the low disbursement rate to delay in assigning mid-term public investment plan, insufficient fund allocation, slow adjustment of investment plan, cumbersome procedures, or delay in completing disbursement procedures.
The disbursement of ODA and preferential loans in Vietnam in the first six months of 2019 was equivalent to 3.4% of the target set by the National Assembly, according to Minister of Finance Dinh Tien Dung. 
 
Overview of the conference. Source: Tuoitre Newspaper.
Overview of the conference. Source: Tuoitre Newspaper.
As of August, the disbursement rate was VND6.48 trillion (US$281.32 million), or 10.7% of the target set by the National Assembly at VND60 trillion (US$2.6 billion), Dung informed at the conference discussing the disbursement rate of ODA on September 13 as reported by Tuoi Tre Newspaper. 

In the 2016 – 2018 period, total investment capital from the ODA and preferential loans stood at VND137.17 trillion (US$5.95 billion), or 74.53% of the estimate. 

Regular spending from foreign sources in the January – August period reached VND862 billion (US$37.41 million), or 8.5% of the estimate. 

As of present, 35 government agencies and provinces recorded low disbursement rate, such as the Ministry of Health with 4.8%, Quang Ninh province with 0.5%, Quang Nam with 2.3%, Hung Yen with 8.3%, among others. 

Dung  attributed the low disbursement rate to delay in assigning  mid-term public investment plan, insufficient fund allocation, slow adjustment of investment plan, cumbersome procedures, or delay in completing disbursement procedures. 

Dung referred to the case of Ministry of Education and Training (MoET) having disbursement rate of 25% of the estimate, citing the lack of counterpart funds as the reason. 

Additionally, representative of the MoET said the process of fund allocation is time consuming, in which the planning  often takes one to three months, and only until the third quarter then the ODA funds starts getting disbursed. 

To speed up the disbursement rate of ODA and preferential loans, Ngo Van Quy, vice chairman of Hanoi People’s Committee proposed the mechanism of disbursing ODA funds based on actual implementation progress and the fund provision plan of donors. 

Quy pointed to the pilot urban railway project of Hanoi with section Nhon – Railway Station which invested with an estimated fund of VND3.27 trillion (US$141.69 million). However, as of the end of August, only VND1.1 trillion (US$47.65 million) has been allocated, or 34% of the estimate. 

Another example is the Hanoi urban railway project section South Thang Long – Tran Hung Dao with the disbursement rate of 5% of the estimate. IN 2019, the allocation plan was VND393 billion (US$17 million), but only VND18.4 billion (US$796,904) has been disbursed to date. 
Comments
Other news
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.
22:02, 2024/12/17
Regional, international financial centers mean boosters to Vietnamese economy: Deputy PM
Ho Chi Minh City envisions its financial center encompassing the money market, banking system, capital market, and derivatives market.
15:44, 2024/11/14
IFC sets record with US$1.6 in climate financing to support Vietnam’s green transition
The new commitments aim to bolster Vietnam's shift towards a low-carbon economy while enhancing private-sector resilience and competitiveness.
21:44, 2024/11/11
Vietnam's credit growth up 10% in 10 months
Vietnam’s central bank has set a credit growth target of around 15% this year.
08:08, 2024/10/05
Building Hanoi's smart city with smart banking
In Hanoi's smart city development strategy, smart payment and open banking ecosystems are critically important.
21:34, 2024/09/19
Vietnam stock market clears major legal hurdle to potential upgrade
Starting November 2, foreign investors will no longer be required to pre-fund 100% of their transactions, promising the removal of a major roadblock for Vietnam's market upgrade process.