Ministry of Finance expects to mobilize 38.2 billion USD in ODA loans for 2026–2030

Ministry of Finance expects to mobilize 38.2 billion USD in Official Development Assistance (ODA) loans from 2026 to 2030 to promote infrastructure development, climate change adaptation and green transition in Vietnam. (Photo: Vietnam+) On April 20, the Ministry of Finance organized a conference to disseminate Decree No. 119/2026/ND-CP on amendments to certain provisions of Decree No. 242/2025/ND-CP on the management and use of Official Development Assistance (ODA), concessional foreign loans and directions to attract this capital in the 2026–2030 period. At the event, Mr. Nguyen Quoc Phuong, Director of the Debt Management and Foreign Economic Relations Department, said Decree No. 119 was issued to concretize the 2025 Law on Public Debt Management, ensuring consistency with the Law on International Treaties and the State Budget Law. This legal document focuses on removing practical bottlenecks by simplifying the approval process through the “loan proposal” mechanism, helping to shorten administrative processing time significantly. In addition, the Government will push decentralization in negotiations, signing and adjusting loan agreements while improving the financial mechanism to strengthen support for localities and priority sectors. These reforms are expected to create a more transparent and streamlined legal environment, improve the effectiveness of mobilizing and using foreign capital, thereby increasing the initiative and accountability of the managing agencies in project implementation. In parallel with institutional reforms, the Ministry also introduced the Orientation for attracting, managing and using ODA for the 2026–2030 period, which was approved by the Prime Minister under Decision No. 441/QD-TTg. Under this strategy, external borrowing will be mobilized in a scale and structure that are appropriate, prioritizing projects with spillover effects, especially in socio-economic infrastructure, climate change response, green transformation and innovation. The use of loans will be balanced against effectiveness and debt-servicing capacity, ensuring national debt safety. Foreign concessional loan sources are identified as an important supplementary source after domestic resources have been mobilized and more favorable financing conditions are available. Based on the results of the previous assessment and forecasts of future demand, the Ministry expects total ODA loans and concessional foreign loans to reach about 38.2 billion USD for 2026–2030. However, effective disbursement of these resources remains challenging due to organizational capacity and coordination. Accordingly, the Ministry proposes focused solutions, focusing on improving project preparation quality, innovating risk management methods and promoting technology transfer. The Ministry notes that disseminating Decree 119 and the new phase orientation will form the basis for ministries, sectors, localities and development partners to enhance connectivity and contribute to achieving Vietnam’s sustainable growth goals in the next five years./ Resolution No. 59-NQ/TW (24/01/2025) of the Politburo on international integration in the new situation aims to raise the quality, efficiency and coordination of the integration process, maintain a peaceful and stable environment to develop the country, while leveraging external resources to build an independent, self-reliant, fast-growing and sustainable economy. The Resolution identifies specific objectives across multiple areas: economy; politics, defense, and security; science and technology and innovation; culture, society, tourism, environment, education and health… together with strengthening capacity to implement international commitments and coordination, and enhancing the proactive role of localities./ Hanh Nguyen Vietnamplus