At a hybrid conference held on October 15, which drew representatives from 30 provinces and cities, participants pointed to reasons behind the slow ODA disbursement, including delays in land clearance, slow tendering, investment decision revisions, and issues with loan agreements. The transition to a two-tier local administration model has also contributed to delays as new procedures with loan suppliers are required.

Local authorities reported on their efforts to overcome these barriers but also sought further support from the MoF. Provinces like Dong Nai, Hung Yen, Tay Ninh, and Ha Tinh faced obstacles pertaining to legal procedures, land clearance, and coordination with international loan providers.

They urged assistance in dealing with international loan agreement procedures, ODA disbursement mechanisms, and capital plan adjustments to ensure efficient use of public investment funds.

As of October 14, the disbursement rate for public investments funded with foreign capital stood at 18.68%, or VND4.37 trillion (US$165.92 million), with an expected 10-month total of just 20% of this year's target. This is significantly lower than in the same period of previous years (30.6% in 2024 and 38.1% in 2023), accoding to the MoF.

Of the 108 projects with allocated funding, only 72 have disbursed the capital. Twelve projects are still awaiting loan agreements, while others have not completed legal procedures.

For the 2024 capital plan extended into 2025, the disbursement rate was only 5.89%, with ministries achieving 3% and localities 15.02%.

Speaking at the conference, MoF Deputy Minister Tran Quoc Phuong emphasised that the successful disbursement of public investment funds for 2025 is critical to achieving the nation’s economic growth target of over 8%. This, he said, is a top priority for the Government, with a series of resolutions, directives, and reminders already issued by the Prime Minister and the ministry, but progress remains slow.

He said that the most pressing issue now is to identify why disbursement is still sluggish despite regulatory improvements since the year's beginning. Solutions need to be divided into two categories – short-term actions that can be implemented this year and long-term measures to improve disbursement in the future, said the official.

Phuong stated that the primary focus from now until the end of 2025 is on accelerating disbursement, particularly of ODA funds, describing this as the most feasible solution at present.

For 2026, the ministry urged ministries and localities to thoroughly review the possibility of procedure completion for each project, especially ODA-funded ones, to ensure accurate planning. Any issues of feasibility should be reported early to allow for timely adjustments. The ministry stressed the need for precise initial planning to avoid mid-year changes and for close coordination with the MoF ensure timely reporting to the National Assembly.

In 2026, the two-tier local government system will be fully operational, with strengthened infrastructure and streamlined domestic procedures. This, according to the official, will ensure no further delays in project implementation and disbursement.

In the long term, the MoF is considering the creation of a dedicated fund to manage and disburse ODA loans do as to ensure progress, efficiency, and transparency while meeting loan providers' requirements.

The ministry will continue to organise workshops and training sessions to disseminate new regulations and support ministries, agencies, and local authorities in efficiently managing and disbursing ODA funds.

Six-month ODA disbursement rate in localities remains low

The disbursement of public investment funded by official development assistance (ODA) in localities in the first six months of this year has reached only 7.6% of the year’s target, according to the Ministry of Finance (MoF).