ODA prioritises high-impact transformative projects

ODA prioritises high-impact transformative projects

Prioritising the allocation of official development assistance and concessional foreign loans to key projects with strong spillover effects is central to mobilising, managing and utilising concessional financing for 2026-2030.

The plan was approved on March 18. The decision makes clear that the mobilisation, management and use of official development assistance (ODA) and concessional foreign loans during 2026-2030 will follow the principle of ensuring an appropriate scale and structure of funding to meet national, sectoral and local development investment needs.

Accordingly, ODA and concessional financing will be allocated to meet disbursement requirements for projects with defined pipelines, including ongoing projects, those carried over from 2021-2025, and new projects under preparation expected to complete procedures and require partial disbursement during 2026-2030.

It will also be used for large-scale infrastructure and nationally significant projects that have yet to determine specific investment models or funding sources. as well as other public investment programmes and projects as directed by the authorities.

Priority will be given to ODA and concessional loans for targeted initiatives and flagship projects capable of generating wide-ranging spillover effects and transformative impact, alongside efforts to improve socioeconomic infrastructure.

ODA and concessional loans will be used exclusively for development investment expenditure, based on clearly defined programmes and projects. Their mobilisation and deployment will be subject to careful assessment of borrowing conditions, feasibility and efficiency, while ensuring balanced allocation across regions and sectors, maintaining public debt safety indicators and repayment capacity, and aligning with national public investment, financial and debt management plans.

Top priority will be given to the development of critical infrastructure projects with strong spillover effects and transformative potential at the national, regional, and provincial levels. At the same time, funding will support improvements in socioeconomic infrastructure, environmental protection, climate change adaptation and disaster resilience,

Vietnam will prioritise mobilising financing sources with favourable terms, minimal conditionality, streamlined and flexible procedures, and diverse financial instruments suited to the country, alongside opportunities for technology transfer and grant components.

Concessional foreign loans will be positioned as a supplementary source of funding to fill gaps after mobilising domestic resources and other more favourable financing. These funds will be channelled into sectors where domestic public investment and highly concessional ODA are insufficient, and where private investment is difficult to attract.

To ensure effective implementation, the plan outlines five key groups of tasks and solutions.

These include: improving institutions, policies enhancing negotiations with development partners on funding provision; improving the preparation, approval and implementation of ODA and concessional loan-funded programmes and projects; innovating approaches to mobilisation and risk management and concessional financing; and strengthening the absorption of advanced technologies.

VIR