06 Basic Principles in State Management of ODA Funds and Concessional Loans

According to Decree 56/2020/ND-CP, the state management of ODA funds and concessional loans is carried out according to the following 06 basic principles:

State management principles for ODA funds and concessional loans (Illustration)

- ODA loans and concessional loans are used for development investment, not for recurrent expenditure. Foreign loans are not used to pay taxes, fees, loan interest, car purchases (except for specialized vehicles approved by competent authorities), materials, spare equipment for the operation process after project completion; land clearance costs; operating expenses of the Project Management Board;- The Government of Vietnam uniformly manages ODA funds and concessional loans on the basis of ensuring effective use of funds and debt repayment capacity; decentralization associated with the responsibilities, powers, and capacities of ministries, central agencies, and local governments; ensuring coordinated management, supervision, and evaluation of relevant agencies according to current legal regulations;- Ensuring openness, transparency, and accountability regarding policies, procedures for mobilization, management, and use of ODA funds and concessional loans among sectors, fields, and localities, implementation status, and results of using ODA funds and concessional loans;- Publishing information about the cooperation policies and priority areas of foreign donors on the electronic information system of the Government of Vietnam (chinhphu.vn; mpi.gov.vn; mof.gov.vn; mofa.gov.vn);- Preventing corruption, loss, waste in the management and use of ODA funds and concessional loans, preventing, and handling these acts according to legal regulations;- Methods for determining development investment expenditure items belonging to the state budget: The determination of development investment expenditure items is carried out according to the regulations of the Law on Public Investment, the Law on State Budget, the Law on Construction, and related legal documents.

Regarding the content of state management of ODA funds and concessional loans:

- Developing, issuing, and organizing the implementation of legal documents on the management and use of ODA funds and concessional loans;- Developing and organizing the implementation of Schemes to attract, manage, and use ODA funds and concessional loans for each period to support the implementation of the 5-year socio-economic development plan; solutions, policies for effective management and use of these capital sources;- Monitoring, providing information on the management and use of ODA funds and concessional loans;- Supervising, evaluating, inspecting, and examining the management and use of ODA funds and concessional loans according to legal regulations.

For details, see: Decree 56/2020/ND-CP effective from May 25, 2020.

Thu Ba

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