New regulations on ODA capital and preferential loans: Increasing transparency, tightening efficiency of use

Decree No. 242/2025/ND-CP on management and use of ODA capital and foreign preferential loans, newly issued, emphasizes the principles of publicity, transparency, and responsibility for investment efficiency and debt repayment capacity.

The Government issued Decree No. 242/2025/ND-CP dated September 10, 2025 on management and use of official development assistance (ODA) and foreign concessional loans.

This Decree provides for the management and use of official development assistance (ODA) and preferential loans provided by foreign governments, international organizations, intergovernmental or international organizations, and government organizations authorized by foreign governments (foreign donors) to the State or the Government of the Socialist Republic of Vietnam.

Methods of providing ODA capital and preferential loans

The Decree stipulates methods of providing ODA capital and preferential loans including: Programs; projects; non-projects; budget support.

Regarding the priority use of ODA capital and preferential loans, the Decree stipulates that non-refundable ODA capital is prioritized for implementation of programs and projects on socio -economic infrastructure development; capacity building; prevention, mitigation of natural disaster risks, disaster relief, disease prevention; response and adaptation to climate change; green growth; science and technology, innovation and digital transformation; social security; preparation of investment projects or co-financing of projects using preferential loans to increase the preferential element of the loan.

Binh Khanh Bridge is part of the Ben Luc-Long Thanh expressway project that was completed at the end of August 2025.

ODA loans are given priority for programs and projects in the fields of health, education , vocational education, climate change adaptation, environmental protection, and essential economic infrastructure that are not capable of direct capital recovery.

Preferential loans are given priority for programs and projects that borrow for re-lending in accordance with the law on re-lending ODA loans and foreign preferential loans of the Government; programs and projects that are part of the state budget expenditure tasks in the field of socio-economic infrastructure development.

Special public investment projects; large, key project programs that are intended to change the situation or change status; other priority cases according to the Prime Minister's decision on orientations for attracting, managing and using ODA capital and preferential loans from foreign donors in each period.

Contents and basic principles in state management of ODA capital and preferential loans

The contents of state management of ODA capital and preferential loans include: Developing, promulgating and organizing the implementation of legal documents on the management and use of ODA capital and preferential loans; Developing and organizing the implementation of orientations for attracting, managing and using ODA capital and preferential loans for each period to support the implementation of the 5-year socio-economic development plan; solutions and policies for effective management and use of these capital sources; Monitoring and providing information on the management and use of ODA capital and preferential loans; Supervising, evaluating and inspecting the situation and results of management and use of ODA capital and preferential loans according to the provisions of law.

The basic principle in state management of ODA capital and preferential loans is: ODA capital and preferential loans are used for development investment expenditures, not for regular expenditures.

The Government unifies state management of ODA capital and preferential loans.

Do not use foreign loans for the following contents: Training and capacity building except for cases serving technology transfer, skills in operating equipment and machinery; survey tours; paying taxes, fees, loan interest; auditing costs; purchasing cars except for specialized cars decided by competent authorities; spare materials and equipment for the operation process after the project is completed except for some special spare materials and equipment decided by competent authorities according to the provisions of law; compensation, support and resettlement costs; operating costs of the Project Management Board.

The Government unifies state management of ODA capital and preferential loans on the basis of ensuring effective capital use and debt repayment capacity; implements decentralization associated with the responsibilities, powers and capacities of ministries, central and local agencies; ensures coordination in management, supervision and evaluation of relevant agencies according to current provisions of law.

Ensure publicity, transparency and promote accountability in policies, procedures, processes for mobilizing, managing and using ODA capital and preferential loans among sectors, fields and localities, and the implementation status and results of using ODA capital and preferential loans.

Announce information on cooperation policies, priority areas, and loan conditions of foreign donors on the Government's Electronic Information Portal System (chinhphu.vn; mof.gov.vn).

Preventing corruption, loss and waste in capital management and use

ODA, preferential loans, prevent and handle these acts according to the provisions of law.

Method of determining development investment expenditure items under the state budget: Determining development investment expenditure items is carried out according to the provisions of the Law on Public Investment, the Law on State Budget, the Law on Construction and relevant legal documents.

The Decree also stipulates the procedures for management and use of ODA capital and foreign preferential loans.

Decree No. 242/2025/ND-CP takes effect from September 10, 2025; replacing Decree No. 114/2021/ND-CP and Decree No. 20/2023/ND-CP of the Government.

vietnamplus.vn

Source: https://baolaocai.vn/quy-dinh-moi-ve-von-oda-va-vay-uu-dai-tang-minh-bach-siet-hieu-qua-su-dung-post881846.html