Vietnam needs to change its policies on official development assistance (ODA) attraction and use in order to better attract this source of capital in the future.

In a recent interview granted to the Vietnam News Agency, Deputy Minister of Planning and Investment Nguyen Chi Dung said that as Vietnam is a middle-income country, development partners will gradually cut down ODA and increase lending conditions for the country.

Therefore, between now and 2018, Vietnam should quickly disburse its remaining ODA sources for development while focusing on removing all difficulties and shortcomings in implementing ODA projects, he said.

“We also need to well prepare for the next stage when we will receive less preferential ODA,” he noted.

It is necessary to renew lists of projects to make them suitable to new ODA sources as well as closely control the disbursement to ensure the effective use of this capital, he said, adding Vietnam should both ensure the transparency and feasibility of projects and meet donors’ requirements.

“It’s time for the country to come to the negotiating table with donors to discuss the best ways to lure and use the new source of capital,” Dung stressed.

According to the Deputy Minister, over the past time, his ministry has closely coordinated with donors in reviewing the implementation of projects and programmes as well as restructuring those making slow progress.

The ministry has also instructed agencies at all levels to inspect investment areas in order to avoid losses, waste and other negative phenomena in the use of State investment, including ODA and preferential loans from donors.-VNA