New orientations for management and use of preferential loans, ODA

Under the Decision, the Government will double efforts to address obstacles that have hindered disbursement of preferential loans and ODA capital from now to 2020.

The aforesaid credit will only be steered to key and effective projects that would spur region-to-region connectivity in order to ensure sustainable socio-economic development while keeping public debt below the ratio fixed by the National Assembly.

Selection of those projects shall be conducted on the basis of transparent evaluation in order to ensure efficient use of foreign capital.

Non-refundable aid will mainly be used for poverty reduction, institutional and human resource development, knowledge and technological transfer, mitigation of natural disasters and climate change adaptation or in public-private partnership projects.

Meanwhile, ODA will be prioritized for projects/programs in such fields like healthcare, education and vocational training, climate change response, environmental protection, and mega transport infrastructure to help boost socio-economic development.

Preferential loans will be used to finance mega infrastructure projects or to relend to local project owners. Other key projects in this area shall be decided by the PM.

For 2021-2025 period, foreign credit shall be used to finance projects that could directly help accelerate growth and sustainable development, projects that could create foreign currency earnings in the medium and long-run to ease loan burden, or projects on climate change adaptation, improvement of environmental quality, healthcare, education, and skill training among others./.

By Thuy Dung