Clearly identify priority areas for using ODA capital

(Baonghean) - What sectors is the ODA "milk" feeding and which sectors will it continue to invest in? These are some of the questions raised after the Ministry of Planning and Investment reported to the National Assembly on the signing and disbursement of ODA capital and preferential loans from foreign donors in the period 2010 - 2015. Accordingly, in the period 2010 - 2014, more than 10 billion USD of ODA capital was allocated to the transport sector, accounting for over 37%, while for health - society only accounted for 4.54%, for education and training was 3.84%.

Not disbursing all capital

Nghi Thai spillway bridge (Nghi Loc) was built from ODA capital.

Minister of Planning and Investment Bui Quang Vinh said that ODA capital and preferential loans from foreign donors were only available in the 2010-2012 period with nearly 21.8 billion USD. Since 2013, when Vietnam became a development partner, there has been no ODA commitment at the annual Vietnam Development Partnership Forum (VDPF). Disbursement is estimated at nearly 27.2 billion USD, equal to 88.7% of total ODA capital and preferential loans.

According to the Ministry of Planning and Investment, the sectors of transport, environment (water supply, drainage, climate change response, etc.), urban development, energy and industry are the sectors with relatively high proportions of ODA capital and preferential loans. Meanwhile, the sectors of agriculture and rural development combined with hunger eradication and poverty reduction, health, social affairs, education and training, science and technology, institutional capacity building, etc. account for a rather modest proportion.

There are many challenges to overcome.

Many transport infrastructure projects are invested from ODA capital. Illustrative photo.

At present and in the near future, there are many challenges in attracting, managing and using ODA capital and preferential loans. In the vision to 2020 and the following years, the orientation of using non-refundable ODA capital, ODA loans, and preferential loans will be used to invest in different goals, in which preferential loans will be for key national programs and projects with stable revenue sources and debt repayment capacity such as building power plants, toll highways, subways, elevated railways in major cities, telecommunications systems, production facilities with high technology and engineering content, etc.

Provide private sector support

According to the Ministry of Planning and Investment, the orientation on priority areas for using ODA capital and preferential loans in the coming time shows that a part of ODA capital and preferential loans can be used to invest in production development to promote trade, contribute to job creation and economic restructuring in regions and localities.

Based on the above principles, the orientation on priority areas for attracting and using ODA capital and preferential loans in the order that the Ministry of Planning and Investment has submitted to the Government. However, according to many economic experts, the arrangement of the "tower" of priority for using this capital source also has many shortcomings.

Notably, the areas considered as fundamental solutions with pioneering nature are ranked in the last priority order, such as human resource development, especially high-quality human resources, science and technology development and knowledge economy; agricultural and rural development; environmental protection and natural resources, climate change response and green growth; support to promote investment, trade and some production and business sectors... Therefore, in the process of implementing this valuable loan source, it is even more necessary to have decisive policies close to reality, so that ODA investment capital and preferential loans can be more effective, bringing practical benefits to the nation and people./.

Red River