In the first eight months of this year, Vietnam secured nearly USD 450 million from ODA and foreign concessional loans. With the new inflows projected for the rest of the year, total mobilisation in 2025 could approach USD 820 million, matching the country’s annual average of USD 800 million to 1 billion during the 2021-2025 period, except for 2022 when the figure dropped sharply due to COVID-19 impacts.
Despite stable mobilisation, disbursement has remained sluggish. From 2021 to 2024, only about VND 66.5 trillion (over USD 2.5 billion) was disbursed, meeting just 22 per cent of the total initially assigned public investment and 44.9 per cent of the revised allocation by the Prime Minister. In the January-August period alone, central agencies and localities disbursed only VND 3.59 trillion, equivalent to 15.3 per cent of the annual plan.
The Ministry of Finance stressed that demand for foreign capital remains very high in 2025 and subsequent years, especially for major infrastructure and climate-related projects. During 2025-2027, the country aims to mobilise over VND 2.22 quadrillion.
To accelerate ODA implementation, the Government has been reforming its legal framework. Key changes include shortening project preparation time by replacing the requirement to submit project proposals to the Prime Minister with simplified loan proposal submissions, decentralising approval authority, easing procedures for granting projects, and aligning capital allocation periods with disbursement schedules.
Most notably, the Government recently issued Decree No. 242/2025/ND-CP, which took effect on September 10, replacing Decrees 114/2021 and 20/2023. The new decree introduces several important reforms such as creating a legal corridor for state-owned enterprises to use ODA capital and preferential loans; and simplifying the process of receiving non-refundable ODA capital.
Accordingly, ODA capital and preferential loans will be provided through four methods including programmes, projects, non-projects and budget support. In particular, non-refundable ODA capital is prioritised for implementing projects to develop socio-economic infrastructure, enhance capacity, prevent and mitigate natural disasters and epidemics, respond to climate change, promote green growth, as well as the fields of science, technology, innovation, digital transformation and social security.
In addition, this capital can also be used to prepare investment projects or co-finance projects using preferential loans, in order to increase the preferential nature of the loan.
Meanwhile, ODA loans will focus on programmes and projects in the fields of health, education, vocational education, climate change adaptation, environmental protection and essential economic infrastructure unable to recover capital directly.
A notable new point is that the private sector can also access and use ODA capital and preferential loans through mechanisms such as the State capital participation in public-private partnership (PPP) projects, participation in the implementation of programmes and projects supporting the private sector, or being assigned to carry out public investment tasks according to the provisions of the Law on Public Investment.
The issuance of Decree 242 is seen as a concrete step to improve transparency, accountability, and efficiency in managing international financial resources, while strengthening Vietnam’s capacity to attract and utilise ODA for sustainable socio-economic development.
