What are regulations on the scope of state management for ODA and concessional loans in Vietnam?

What are regulations on the scope of state management for ODA and concessional loans in Vietnam?

Pursuant to Clause 1, Article 6 of the Decree 114/2021/ND-CP stipulating scope of state management for ODA and concessional loans in Vietnam as follows: 

1. Scope of state management for ODA and concessional loans:

a) Formulate, promulgate and organize the implementation of legislative documents on management and use of ODA and concessional loans;

b) Formulate and implement Proposals for attracting, managing and using ODA and concessional loans in each stage to facilitate the implementation of 5-year socio-economic development plans; measures and policies to effectively manage and use such funding sources;

c) Supervise and provide information about management and use of ODA and concessional loans;

d) Monitor, evaluate, and inspect the management and use of ODA and concessional loans according to regulatory provisions.

What are basic rules for state management of ODA and concessional loans in Vietnam?

Pursuant to Clause 2, Article 6 of the Decree 114/2021/ND-CP stipulating basic rules for state management of ODA and concessional loans in Vietnam as follows: 

2. Basic rules for state management of ODA and concessional loans:

a) ODA and concessional loans shall be used to finance capital expenditures only, and are not available for recurrent expenditures. Foreign loans must not be used to carry out activities, such as training or drilling for capacity building, except transfer of technologies and skills in operating equipment and machinery; make study visits or trips; pay taxes, fees, and interest expenses on loans; purchase cars, except for specialized cars decided by competent authorities, reserve supplies and equipment for operation phase after the project is completed, except for special ones decided by competent authorities in accordance with legislative regulations; pay compensation, support and resettlement expenses; pay operating expenses of the Project Management Unit; 

b) The Government shall unify the state management of ODA and concessional loans on the basis of ensuring the effective use of capital and solvency; decentralization associated with accountability, power, managerial capability of ministries, central and local authorities; ensuring coordinated management, supervision and evaluation of concerned agencies in accordance with applicable laws;

c) Ensure information disclosure and transparency; promote accountability in terms of policies, procedures for raising, managing and using ODA and concessional loans among industries, sectors and localities; and the effectiveness of using ODA and concessional loans;

d) Disclose information about cooperation policies, priority fields of foreign donors on the Government's web portals (chinhphu.vn; mpi.gov.vn; mof.gov.vn; mofa.gov.vn);

dd) Prevent and combat corruption, losses and wastefulness in management and use of ODA and concessional loans; prevent and impose punishments for these acts in accordance with law;

e) Methods of determining capital expenditures funded by the state budget: Capital expenditures are determined in compliance with the provisions of the Law on Public Investment, the Law on State Budget, the Law on Construction and other relevant legislative documents.

Best regards!