Minister of Planning and Investment Nguyen Chi Dung urged localities on August 26 to not use Official Development Assistance (ODA) loans next year for projects where funding can be mobilised from the private sector or domestic sources.

Minister of Planning and Investment Nguyen Chi Dung 

Interest rates on ODA are relatively high, so funds must be used selectively on projects that are practical and vital to the development of localities, Dung told an online conference on the formulation of socio-economic development and public investment plans for the northern midlands and mountainous region and the Red River Delta in the next five years and 2021.

It aimed to address difficulties facing cities and provinces in the region in building 2021-2025 plans for socio-economic development and public investment and in proposing solutions and policies to fuel economic growth and disburse public investment and other funding sources this year.

The minister asked localities to continue promoting reforms with a strategic vision in a bid to formulate plans that best match their potential and advantages.

Localities must also economically and effectively exploit resources, especially land, Dung said, adding that they need to exert tight control over modified public investment projects to minimise revenue lost from the State budget and prevent waste.

They should also prioritise major projects that create momentum and have a positive effect on local socio-economic growth.

Similar conferences will also be held for the central, central highlands, southern, and Mekong Delta regions.