Disbursement of official development assistance (ODA) in the first half of the year was estimated at more than 4.17 trillion VND (179.7 million USD), accounting for only 6.9 percent of the National Assembly’s plan and 12.7 percent of that assigned by the Prime Minister, according to the Ministry of Planning and Investment (MPI).

Nhat Tan bridge in Hanoi is a key infrastructure project
in the country built with Japanese ODA. (Photo: VNA)

Eight of 59 localities had a disbursement rate of more than 30 percent, including Hai Phong, Ninh Binh, Phu Yen, Ho Chi Minh City, Binh Duong, Tra Vinh, Kien Giang and Bac Lieu. The rate was below 30 percent at 11 ministries and sectors and zero in 28 other localities.

The MPI said that a lack of corresponding funds has made it impossible to absorb foreign capital, resulting in the slow disbursement of ODA. Meanwhile, several projects have not completed investment procedures or been in the process to adjust total investment capital or extend loan agreements. 

Besides, low readiness of projects has affected the disbursement progress. Although many are arranged with enough capital like urban transport project in Hai Phong city, project on upgrading Can Tho University and project on expanding Hoa Binh General Hospital, money could not be disbursed due to bottlenecks in land clearance and resettlement.

The ministry has set up working groups to supervise ODA disbursement in key sectors, and devise measures to accelerate the progress.