Categories: Business

Business News in Vietnam on April 13, 2024

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In a recent government meeting and online conference with cities and provinces, Prime Minister Pham Minh Chinh emphasized the need to accelerate projects involving official development assistance (ODA) to boost public investment disbursement and contribute to socioeconomic development. The slow disbursement of ODA capital for various projects has been a persistent issue, prompting the government to call for the removal of policy obstacles hindering progress.

Ministries have been urged to revise and simplify regulations on the management and use of ODA and concessional loans provided by foreign donors to expedite disbursement. Minister of Finance Ho Duc Phoc highlighted the challenges faced in ODA disbursement, citing complexities in the Law on Public Investment that hinder the spending of allocated funds.

The Ministry of Planning and Investment reported that Vietnam signed ODA and concessional loans totaling $3.35 billion for the 2021-2023 period. However, disbursement rates have been low, with only 1.42% of the foreign capital target for 2024 being disbursed as of February 29.

Various ODA projects, such as the Can Tho City Oncology Hospital project and the Can Tho river embankment project, have faced challenges leading to slow progress. Issues like commercial contract disputes, insufficient site handover, and funding delays have hampered project implementation.

In response to the sluggish ODA disbursement, the government is working to address obstacles and improve efficiency. Efforts are being made to streamline administrative procedures, enhance project management, and strengthen cooperation with development partners to ensure the effective utilization of ODA funds.

Despite the challenges, the government remains optimistic about economic growth and is focused on implementing pro-business solutions to stimulate development. The upcoming Vietnam National Brand Week and business forums on green transition and finance reflect the country’s commitment to sustainable development and economic progress.

Team@GQN.