HCMC – Vietnam had secured nearly US$450 million in official development assistance (ODA) and concessional foreign loans in the year to August, with an additional US$370 million expected to be mobilized by year-end.
Between 2021 and 2025, the country has mobilized an average of US$800 million to US$1 billion each year in ODA and concessional loans, with the exception of 2022 when volumes dropped sharply due to the Covid-19 pandemic, according to the Ministry of Finance.
Almost US$450 million in ODA and concessional loans were secured in the January-August period, and the total could increase by around US$370 million by the end of this year.
However, the disbursement of public investment funded by foreign capital has remained slow compared to the plan.
From 2021 to 2024, around VND66.5 trillion in those loans was disbursed, equivalent to only 22% of the initial capital plan and 44.9% of the revised allocation approved by the prime minister.
Between January and August 2025, ministries and localities disbursed only VND3.6 trillion, equal to 15.34% of the year’s plan of VND23.4 trillion.
The ministry noted that Vietnam’s demand for foreign loans remains substantial.
To accelerate disbursement, the Government has simplified a number of procedures, such as removing the requirement for the prime minister’s approval of project proposals, streamlining loan application documents, delegating investment approval authority, and allowing capital allocation in line with disbursement progress.
Bidding regulations have also become more flexible, permitting the application of foreign donors’ rules and allowing bidding to take place before loan agreements are signed.
