Business

Only 10 percent of ODA, concessional loans disbursed in eight months

SGGP
According to the Ministry of Finance, by August 30, 2019, disbursement of official development aid (ODA) and foreign concessional loans was merely at VND6.48 trillion, accounting for 10.7 percent of the target of VND60 trillion, set by the National Assembly of Vietnam (NA).
Total ODA and foreign concessional loans disbursement in 2016-2018 exceeded VND137.17 trillion, accounting for 74.53 percent of estimate of NA. In the first eight months of this year, disbursement of public investment from the state budget was more than VND6.28 trillion, or 38 percent of the NA plan.

Regular spending activities from foreign capital also experienced sluggishness. In the last eight months, disbursement was merely at VND862 billion, or 8.5 percent of the estimate approved by the NA. Of which, 35 ministries, departments and provinces have not disbursed since the beginning of this year. Other ministries, departments and provinces also had low disbursement rates, at just a few percent.

Stagnancy in disbursement of ODA and concessional loans was because of entanglements in assigning the medium-term public investment which was slow or insufficient in comparison with demand; capital allocation was not close to reality; plan adjustment was slow with prolonged procedure. In addition, projects finished investment procedure slowly and faced difficulties in site clearance and arrangement of reciprocal capital. Delay in completing procedure of disbursement also affected the disbursement progress. Therefore, ministries, departments and provinces will continue to review and carefully evaluate capital disbursement so as to clarify difficulties, entanglements in the process of implementation and identify shortcomings to draw solutions.

By Han Ni – Translated by Thuy Doan

Other news