Vietnam: Financial management of project funded by ODA or concessional loan

Lê Hải

14:58, 03/10/2018

Recently, the Government of Vietnam issued Decree No. 132/2018/ND-CP on amendments to a number of articles of Decree No. 16/2016/ND-CP on management and use of official development assistance (ODA) and concessional loans granted by foreign sponsors.

According to Decree No. 132/2018/ND-CP of Vietnam’s Government, the project owner shall open an account at the State Treasury or serving bank to receive the ODA or concessional loan.

In case the project owner opens an account at a serving bank, criteria for selecting a serving bank are as follows:

- The serving bank shall have certain credit rating in Vietnam, experience in management of ODA and concessional loan, satisfy banking requirements and prudential ratios.

- The branches of the serving bank are suitable for the program/project.

- The bank agrees to the responsibilities of a serving bank specified in Decree No. 16/2016/ND-CP.

Other provisions can be found in Decree No. 132/2018/ND-CP of Vietnam’s Government, which takes effect from October 01, 2018.

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