The banks of the Huong River in Thua Thien-Hue province were upgraded to serve tourist boats. The upgrade was funded by the Republic of Korea (Photo: VNA)

Hanoi (VNA) – Directions for the attraction, management and use of foreign sponsors’ official development assistance (ODA) and preferential loans from 2016 to 2020 have been issued.

A similar ODA blueprint for 2011 to 2015 helped achieve targets set in the period’s socio-economic development plan.

The 2016-2020 plan takes into consideration Vietnam’s status as a middle-income country, which it acquired more than a year ago. The new status is expected to shift relationships with foreign sponsors of ODA and preferential loans from assistance-based to partnership-based.

The ODA blueprint for 2016-2020, approved by the Prime Minister, outlines policies to ensure the effective mobilisation and use of ODA and concessional loans, helping complete socio-economic development objectives.

While the Party and State recognise the importance of foreign aid and loans, they say internal resources are the best way to attain development goals.

ODA and preferential loans from 2011-2015 programmes that haven’t been disbursed total about 22 billion USD. The new blueprint focuses on finishing these as scheduled.

According to preliminary reports from ministries, sectors and localities, demand for ODA and preferential loans for 2016-2020 is very high, about 39.5 billion USD. Most of the sum will be earmarked for transport, urban development, agriculture, rural development, environment, education, training, health care, science and technology.

The disbursed ODA and preferential loans between now and 2020 is expected to be 25-30 billion USD, up 14 percent over the past five years.

The disbursement of foreign aid and loans by 2020 is considered highly feasible, since a majority of the programmes and projects have already been launched and Vietnam has ensured conditions for the provision of its corresponding funds.-VNA