The ministry on April 20 held a conference to introduce Decree No. 119/2026 on amendments and supplements to a number of articles of Decree No. 242 on the management and use of ODA and concessional foreign loans, and to outline directions for attracting these funds in the 2026-2030 period.

Nguyen Quoc Phuong, Director of the Department of Debt Management and External Finance, said the decree was issued to implement the 2025 Law on Public Debt Management and ensure consistency with the Law on International Treaties and the State Budget Law.

The decree focuses on removing practical bottlenecks by simplifying approval procedures through a “loan proposal” mechanism, helping shorten administrative processing time. It also pushes decentralisation in negotiating, signing and adjusting loan agreements, while refining financial mechanisms to increase support for localities and priority sectors. These changes are expected to create a clearer and more open legal framework, improve the efficiency of mobilising and using foreign capital, and strengthen the initiative and accountability of managing agencies during project implementation.

Alongside institutional improvements, the ministry introduced orientations for attracting, managing and using ODA for 2026–2030, approved by the Prime Minister under Decision No. 441. Under this plan, external borrowing will be mobilised with an appropriate scale and structure, prioritising key projects with spillover effects, particularly in socio-economic infrastructure, climate change response, green transition and innovation.

The use of borrowed funds will be carefully balanced in terms of efficiency and debt repayment capacity to ensure national public debt safety. Concessional foreign loans are identified as an important supplementary source after domestic resources and other more favourable funding sources have been fully mobilised.

Based on previous assessments and future demand, the ministry estimates total ODA and concessional loans in 2026-2030 at about US$38.2 billion. However, effective disbursement still poses challenges in terms of organisational capacity and coordination.

To resolve this, the ministry sets out key solution groups focused on improving project preparation quality, reforming risk management methods and promoting technology transfer. It said that the simultaneous introduction of Decree 119 and the new orientations provides a basis for ministries, sectors, localities and development partners to strengthen coordination, contributing to the implementation of Vietnam’s sustainable growth targets over the next five years.

Separately, Resolution No. 59 of the Politburo on international integration in the new context sets goals to improve the quality, effectiveness and coherence of integration, maintain a peaceful and stable environment for development, and make full use of external resources to build an independent, self-reliant, fast-growing and sustainable economy.

The resolution outlines specific targets across multiple areas, including economics, politics, defence and security; science and technology and innovation; and culture, society, tourism, the environment, education and healthcare, along with strengthening capacity for international integration.

It also sets out key tasks such as strengthening the Party’s leadership, renewing thinking on integration, improving the effectiveness of economic integration linked with restructuring and digital transformation, promoting deeper integration in politics, defence and security, expanding cooperation in science, culture and social affairs, and improving institutions and implementation capacity for international commitments, while enhancing coordination and the proactive role of localities.

Localities asks for help with bottleneck removal to boost ODA disbursement

Localities have called for continued support from the Government and the Ministry of Finance (MoF) to settle procedural and institutional challenges hindering the speed of ODA disbursement in 2025.