Disbursement of official development assistance (ODA) hit over VND1.6 trillion in the first five months of this year.
The figure is equivalent to only 2.7 percent and 5.6 percent of targets assigned by the National Assembly and Government for the whole year, respectively, which were alarming figures, said Finance Minister Dinh Tien Dung on June 26.
During a teleconference held by the Finance Ministry inHanoi, Dung said disbursement of ODA and foreign preferential loans has failedto meet estimate since 2016.
Under the 2016 – 2020 public investment plan, the total ODA and foreignpreferential loans will reach 360 trillion VND (15.6 billion USD). By late2019, more than 244 trillion VND will be disbursed for the 2016-2019 period.
Head of the Finance Ministry’s Department of Debt Managementand External Finance Truong Hung Long said over 60 projects still lack acombined capital of more than 34 trillion VND.
He mentioned obstacles regarding investment, relending,expense control and capital withdrawal procedures.
The Finance Ministry suggested that the Government assignthe Ministry of Planning and Investment (MPI) to work with ministries andagencies to build a new decree on ODA and preferential loan management, and simplifyprocedures to increase capital annually.
The MPI was also advised to report to the Prime Ministerabout the disbursement of 60 trillion VND assigned by the legislature.
In order to accelerate disbursement, efforts of ministries,agencies, investors and sponsors is needed, Dung added.-VNA
Demand for labor in Vietnam’s manufacturing sector is rising sharply due to strong FDI inflows as a result of the transfer of orders and China-based facilities into Vietnam during the ongoing U.S.-China trade war.
Foreign investors registered to pour US$1.73 billion into Viet Nam in June, bringing the total amount of foreign direct investment (FDI) committed to the country in the first six months of the year to $18.47 billion, down 9.2 per cent year on year.
Main sources for FDI growth in Vietnam in the near future would come from South Korea, China, Taiwan and Hong Kong (China).