Improving policies and institutions in attracting ODA Investment in Vietnam
Dr. Nguyen Hoang Tien
At present, a lot of Vietnam's capital comes from the collection of state budget, government bonds, foreign borrowing and ODA. In which, ODA is considered as the capital source with the lowest cost. However, ODA is not a free source of capital for Vietnam. They are often accompanied by mandatory conditions, such as the contractor of the ODA provider must carry out the project, or agreements on expert wages. However, our public debt is very high, recurrent expenditure. Increasing the remaining resources, how much to invest in infrastructure, promote economic development. Therefore, Vietnam really needs this capital. Over the past years, ODA flows into Vietnam have been plentiful and have contributed positively to socio-economic development. Many completed programs, works and projects have been put into operation to serve the people's life, contributing to economic development. Based on an overview of ODA and current situation of ODA attraction and use in Vietnam we are able to assess the achievements as well as the outstanding problems and their causes. The report proposes a number of solutions for the improvement the effectiveness of ODA usage.