Hanoi (VNA) – As Vietnam aims for an ambitious economic growth target of over 8% in 2025, the slow disbursement of public investments, particularly those funded through official development assistance (ODA), remains a pressing challenge. Despite a series of government resolutions, directives, and consistent guidance from the Ministry of Finance, the results so far remain modest, heaping pressure on the country’s overall development objectives.
According to the Ministry of Finance, ensuring full disbursement of public investment capital in 2025 is key not only to achieving the targets of the national investment plan but also to driving economic growth. Yet, current data paints a rather subdued picture, raising questions about both the causes and requiring both urgent and long-term solutions.
Less than 20% disbursed
The Ministry of Finance’s data compiled from ministries, central agencies, localities and the TABMIS system showed that as of October 14, the disbursement rate of foreign-funded public investment stood at just 18.68% of the plan approved by the Prime Minister, a notably low figure as the fiscal year 2025 is nearing its end.
Out of 108 projects and subprojects allocated funding, only 72 have recorded disbursement, meaning a considerable number are still stagnant or ineffcient. Notably, the Ministry of Foreign Affairs, and the provinces of Tay Ninh, Dong Nai, Hung Yen, and Lai Chau have yet to disburse any ODA capital so far this year.
Among the few bright spots are the Vietnam National University, Hanoi; Vietnam National University, Ho Chi Minh City; and the provinces of Dien Bien and Ninh Binh, each achieving a disbursement rate of above 50%.
Regarding procedures, Vu Hoang Nam, deputy head of the Department of Debt Management and External Economic Relations under the Ministry of Finance, affirmed that applications for capital withdrawal have been processed as swiftly as possible – within a single working day for direct payment requests. Out of 557 withdrawal dossiers received so far, 549 have been processed, while eight have been returned for clarification or additional documentation.
“Bottlenecks” in procedure and capacity
At a conference held by the Ministry of Finance on October 15 to assess ODA disbursement in the final months of 2025 and outline plans for 2026, ministries and localities provided a clearer view of the challenges. The “bottlenecks” appear across multiple stages of the project lifecycle.
In Hanoi, as of September 30, ODA disbursement totalled 822 billion VND (31.23 million USD), equivalent to 33.02% of the city’s 2025 plan. While higher than the national average, the capital city continues to grapple with major hurdles in key projects such as the Nhon – Hanoi Station metro line, Nam Thang Long – Tran Hung Dao metro line, Yen Xa Wastewater Treatment System, and Hanoi Station – Hoang Mai metro line. As a result, Hanoi expects to reach just 56.87% of its 2025 ODA target by the end of January 2026.
Similarly, the Ministry of Health reported an extremely low disbursement rate, just 1.5%, across its two key ODA projects this year. The ministry attributed the delay both to internal weaknesses in project management capacity and to external procedural hurdles, particularly the need to comply simultaneously with domestic regulations and sponsors’ requirements.
Localities such as Dong Nai, Hung Yen, Tay Ninh, Lai Chau, and Ha Tinh reported similar obstacles, from prolonged site clearance to slow tendering and contract signing processes.
The “final sprint”
As 2025 marks the final year of Vietnam’s 2021–2025 socio-economic development plan, ensuring effective disbursement of public investments, especially ODA capital, is critical to laying the groundwork for the next five-year phase.
Deputy Minister of Finance Tran Quoc Phuong stressed that accelerating disbursement is a top priority, with three main solution groups being implementation organisation, procedural measures, and payment measures.
Looking ahead to 2026, the ministry has outlined a long-term approach to address the issue at its root. Project owners and investors are urged to review the feasibility of their investment plans carefully before capital allocation, particularly for ODA projects, ensuring realistic targets aligned with the actual implementation capacity.
It also recommended prioritising capital for projects expected to be completed within the year, those meeting all eligibility conditions for funding, transitional or urgent ones with demonstrable socio-economic efficiency, and projects whose financing agreements are due to close in 2026 and cannot be extended./.
