Private enterprises can borrow ODA capital
In addition to public agencies and organizations, private enterprises can also borrow ODA capital and preferential loans from foreign donors.
According to the draft Decree on the management and use of official development assistance (ODA) and preferential loans that is being consulted by the Ministry of Planning and Investment, this agency proposes that the private sector be allowed to access and use ODA capital and preferential loans from foreign donors.
Specifically, private enterprises can access and use ODA capital and preferential loans within the framework of credit limits for loans to domestic financial and credit institutions to carry out activities in accordance with international treaties and agreements on ODA capital and preferential loans and comply with lending procedures of financial and credit institutions.
Private enterprises participate as a capital contributor in investment projects in the form of public-private partnerships (PPP) using ODA capital and preferential loans as investment capital of the State; as well as re-borrowing ODA capital through the commercial banking system in the form of commercial banks bearing credit risks...
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A preferential loan project to be implemented in Hanoi. |
The draft Decree also provides a 7-step process for managing and using ODA capital and preferential loans, including mobilizing loans; developing and selecting project proposals; establishing, appraising, and deciding on project investment policies; negotiating and signing international treaties and capital agreements; managing project implementation and completing project results.
Vietnam began borrowing aid from multilateral and bilateral financial institutions from the World Bank (WB), Asian Development Bank (ADB), International Monetary Fund (IMF) and Japan, France, Denmark, Canada... since 1993. In July 2017, the WB announced the end of preferential ODA for Vietnam, replacing the following loans with preferential loans with higher interest rates.
According to the statistics of the Ministry of Planning, by the end of 2017, the whole country had 2,594 programs and projects borrowing ODA capital and preferential loans. Of which, ministries and branches had nearly 1,300 projects and programs; localities had 1,197 projects.
