Tăng cường hiệu quả sử dụng nguồn vốn ODA ở việt nam tiếng anh

ACADEMY VIETNAM SOCIAL SCIENCE GRADUATE ACADEMY OF SOCIAL SCIENCES NGUYEN VAN TUAN ENHANCING THE EFFICIENCY OF ODA USE IN VIETNAM Sector: Political economy Code: 9.31.01.02 DOCTORAL THESIS SUMMARY HANOI – 2019 The work was completed at: ACADEMY VIETNAM SOCIAL SCIENCE GRADUATE ACADEMY OF SOCIAL SCIENCES Collective scientific guides: Assoc Dr Dao Thi Phuong Lien Dr Pham Van Cong Reviewer 1: Professor Dr Do Duc Binh Reviewer 2: Assoc Dr Bui Quang Tuan Reviewer 3: Dr Luu Duc Hai The thesis will be defended in front of the Academy-level Judging Council, at: Graduate Academy of Social Sciences, 477 Nguyen Trai Street, Thanh Xuan District, Hanoi At …… hour, date… month …… 2019 The thesis can be found at: - Library of Graduate Academy of Social Sciences - Vietnam National Library LIST OF WORKS PUBLISHED RELATED BY THE THESIS AUTHOR MSc Nguyen Van Tuan, "Solutions to accelerate the disbursement of ODA" - Journal of Economics & Forecasting, 8/2012 MSc Nguyen Van Tuan, "What solutions for ODA in the period 2015-2020" - Journal of Economics & Forecasting, 10/2015 MSc Nguyen Van Tuan, "The dark side of ODA: The question posed to the force of protecting economic security" - Asia Pacific Economic Review, 9/2016 MSc Nguyen Van Tuan, "Some solutions to improve the efficiency of ODA use in Vietnam in the coming time" - Journal of Security Science & Education, 12/2017 PREAMBLE The urgency of the topic In the process of integration into the world economy, investment capital for development is one of the decisive factors for the success or failure of each country For Vietnam, the goal is to successfully implement the country's industrialization and modernization process, striving to 2030, Vietnam basically becomes an industrialized country towards modernization Therefore, attracting investment capital becomes an important strategy of the country In particular, ODA funds are assessed by the Government of Vietnam as one of the important sources of state budget, used for socioeconomic development purposes This capital has partly met the urgent needs of capital in the industrialization and modernization process of the country, contributing to promoting economic growth and poverty reduction However, ODA is not only a loan, but also comes with economic and political constraints It will be a burden of debt for future generations or subject to foreign domination if we not know how to use this capital In fact, the use of ODA in Vietnam has been showing many limitations such as the slow disbursement rate of ODA is not commensurate with the amount of signed capital, wastefulness, loss and use of wrong capital have occurred purpose, corruption during use Many projects are behind schedule or ineffective use of ODA, making it impossible to recover capital, making it difficult to arrange sources to repay foreign debts, leading to an increase in the public debt burden, causing damage to Vietnamese side The capacity of the implementing agency is limited, the management capacity of officials is weak, which reduces the sponsor's confidence in Vietnam's ability to receive ODA Moreover, at present, donor contribution to ODA capital in the world has been adjusted both in terms of strategy and strategy towards decreasing and stopping to provide ODA capital for developing countries In the context of Vietnam becoming a middle-income country, official development assistance capital will change, along with the trend of capital export among developed countries in terms of scale, structure and mode of supply, accordingly, non-refundable ODA tends to decrease, while concessional capital (including ODA and less concessional loans) will tend to increased Under such circumstances, the study of ODA use is effective, consistent with development goals and orientations The current economy and the next stage are an indispensable requirement for our country With the practical significance and importance of the abovementioned ODA capital, PhD students would like to choose the topic: "Enhancing the efficiency of using ODA capital sources in Vietnam" in order to properly assess the actual use of ODA capital as well as propose some solutions to help increase the efficiency of using this capital source in Vietnam in the coming time, to conduct doctoral thesis in economics Research purposes and missions 2.1 The purpose of the thesis On the basis of explaining the scientific foundations and analyzing the status of the attraction and use of ODA (Official Development Assistance) in Vietnam in recent years, the thesis proposes, suggests policies and institutions to manage The reason for maximizing the effectiveness of this capital source is to serve the cause of socio-economic development of the country in the coming time 2.2 The mission of the thesis To accomplish the above purpose, the thesis performs several tasks as follows: - Systematize the theoretical basis and provide a theoretical framework for the study of ODA attraction and use - Overview of domestic and foreign research results related to ODA attraction and use in Vietnam, indicating the limitations of these studies as well as the issues that have not been studied - Analyze and assess properly the situation of ODA attraction and use in Vietnam in the period of 1993-2018 - Forecasting, proposing orientations and developing major solutions to increase the efficiency of ODA use in Vietnam in the coming time, especially when Vietnam is already a middle-income country Research subject and scope 3.1 Research subjects The thesis takes the effective situation of using ODA capital in Vietnam as a research subject 3.2 Research scope In terms of content: The dissertation focuses on researching the major issues of theory and practice of the use of ODA in Vietnam In terms of time: The thesis focuses on researching subjects from 1993 to 2018 However, most of the information and data will be collected, updated and calculated mainly in the period from 2011 to 2018 In 2018, the time Vietnam entered the threshold of a middle-income country In terms of space: The dissertation studies in Vietnam, with reference to experiences of a number of countries in the region and internationally with similar Vietnamese socio-economic context and conditions in terms of attraction and effectiveness use of ODA From there, it is possible to discover a number of common regulatory issues for developing countries (including Vietnam) to better identify and use ODA Research Methodology The thesis uses the main research method which is dialectical materialism and historical materialism of Marxism-Leninism Using dialectical materialism and historical materialism, the author of the thesis has derived from studying the basic category of the topic as the efficiency of using ODA capital in the context of Vietnam before and after the average normalize foreign relations on the international arena On that basis, the thesis focuses on researching, analyzing and assessing the current status of effective use of ODA in Vietnam over the past time Dialectical materialism and historical materialism require the study of the current situation of effective use of ODA in Vietnam over the past time, which must be very objective, especially from objective and subjective conditions , note the influence of the objective laws In this thesis, both qualitative and quantitative research methods are applied The qualitative research method is applied in detecting and determining the impact of ODA on socio-economic development, state management, and factors affecting ODA in Vietnam Quantitative research was applied in assessing these impacts New contributions of the thesis 5.1 Contribute theoretically The thesis has systematized the theoretical basis for ODA attraction and use, from the concept of ODA under the current conditions (ODA includes not only non-refundable ODA and concessional loan, but also includes including less concessional loans but still preferably to commercial loans), forms and methods of providing ODA; classification of loan conditions for ODA capital; criteria for evaluating the effectiveness of ODA use; Factors affecting the attraction and efficient use of ODA capital for Vietnam in the coming time 5.2 Contribute in practice The thesis summarizes and clarifies a number of lessons learned about ODA attraction and use from aid recipients in the world, with similar economic development qualifications and history similar to Vietnam like China , Philippines, Indonesia, Malaysia, Bangladesh The thesis has analyzed the status of ODA attraction and efficiency in Vietnam over the past 26 years, assessing the outstanding achievements, the outstanding points and the causes The thesis shows the opportunities and challenges of ODA capital and based on the development of different scenarios on economic growth, investment and development, public debt to have a basis for determining the size and the amount of ODA, thereby proposing major solutions to increase the attraction, further improve the quality of management and efficient use of this capital source in Vietnam in the coming time The dissertation has made recommendations to the donors and the state management agencies at all levels to enhance the attraction and effective use of ODA capital in the coming time, especially when Vietnam has become a revenue-earning country enter the average Scientific and practical significance of the thesis The thesis has important implications both in theory and practice It is one of the documents of scientific value that has a theoretical basis for ODA and the efficiency of ODA use in Vietnam The research results of the thesis will be a reference for state management agencies on ODA and ODA policy makers in orienting and defining ODA strategy in a new context in Vietnam In addition, the thesis topic can be used to supplement research and teaching activities in universities, as a reference for research of graduate students and students in economics and manager The structure of the thesis In addition to the Introduction, Conclusion, List of References and Appendices, the thesis is structured into chapters as follows: Chapter 1: Overview of research situation Chapter 2: Theoretical and practical basis for the efficient use of ODA Chapter 3: Current status of ODA attraction and use in Vietnam over the past time Chapter 4: Viewpoints and solutions to enhance the efficiency of ODA use in Vietnam CHAPTER OVERVIEW OF THE RESEARCH SITUATION 1.1 The research works related to the thesis topic 1.1.1 International studies Regarding the overview of ODA attraction, use, experience in ODA management as well as aid effectiveness in Vietnam, international research can be divided into two main areas as follows: a) General studies on ODA, ODA attraction, management, ODA management experience and international aid effectiveness: ODA is approached / understood in many different ways Basically divided into the following schools, views: Shahriar Rahman Kibriya (2011), Aid and Peace: A critique of foreign assistance, conflict and development, gave an understanding of ODA under three main points, namely optimism, pragmatic and pessimistic The optimistic view emphasizes the positive impact of ODA on economic development and social welfare in developing countries The typical face of this view is Jeffrey Sachs, whose book, "The end of poverty: Economic possibilties for our time (2005)", along with his message of "ending poverty" when Developed countries provided more ODA with an average of 135-195 billion USD for the next decade The pragmatic view emphasizes the effectiveness of aid, therefore requiring more careful choices when it comes to providing aid to beneficiaries and making recommendations to create a aid market more effective In "Aid, Policies, and Growth", Burnside and Dollar (2000) find that aid has a positive impact on growth in developing countries that have good financial, monetary and trade policies While implementing poor policies, aid has not had a positive effect on development The pessimistic view that aid reform and implementation is useless and greedy In Easterly's (2006) book The White man's burden: Why the West's efforts to aid the rest have done so much III and so little good, 2006 asks whether aid money really reaches the poor The reason for this point of view is because he feels that it is due to non-democratic management and corrupt governments in the countries that receive the aid According to Jin-Wook Choi (2011), “From A Recipient To A Donor State: Achievements And Challenges Of Korea’s ODA”, ODA is understood in an ideal and pragmatic perspective In an ideal approach, it is considered that ODA is derived from the benefit of the receiving country rather than the donor country (Lumsdaine and Schopf, 2007) This is in keeping with the nature of ODA for humanitarian purposes (Maizels and Nissanke, 1984) Pragmatic approaches tend to focus on the national economic and security interests of the ODA-providing country (Arnold, 1985; Morgenthau, 1962; Noël and Thérien, 1995) b) Studies of international organizations and experts on ODA management and use in Vietnam: These studies provide objective assessments on the status of implementation of the Paris Declaration and Hanoi Commitment as well as aid effectiveness in Vietnam Here are some outstanding studies: Reports of DAC / OECD on the situation of aid implementation in Vietnam, donor modes, donor behavior, aid effectiveness Katarina Kotoglou; Marcus Cox; Oxford Policy Management; Agulhas Applied Knowledge (2008), Report on the implementation of the Hanoi Core Statement on Aid Effectiveness: A review of aid effectiveness at the sectoral, national and institutional harmonization issues In accordance with the Hanoi Core Statement, particularly recommendations regarding aid policies and solutions for both donors and recipient countries 1.1.2 Domestic studies In addition to foreign works and research projects, there have been a number of topics, theses, scientific research works, ODA programs / projects, books and newspapers related to the attraction, managing and effectively using ODA capital sources in Vietnam a) Studies of international organizations and foreign individuals in Vietnam, the ODA programs / projects of the managing Ministry: Typically, The World Bank (2000-2007), "Vietnam Development Report": The report gave an assessment of the role and Summary of domestic and foreign studies shows that the works have been mentioned: (i) Some issues of ODA theory such as the concept and nature of ODA capital, especially given theoretical models demonstrate that the provision of ODA is sound and scientific basis; (ii) Point out the links between ODA and economic growth / development These results can be used as a scientific basis for policy makers of countries and organizations in charge of ODA; (iii) Present some lessons learned about ODA attraction, management and effectiveness of countries in the region and the world and experience for Vietnam; (iv) Suggest a number of recommendations to further strengthen the management and effective use of aid in general and for specific areas such as health, agriculture and rural development, and infrastructure development basis This is an important source of input for this thesis However, these works are studied individually at different periods, from different perspectives, perspectives and assessments Therefore, there is a specific and difference in evaluating the efficiency of ODA use On the other hand, these studies have not comprehensively systematized theories and methods to evaluate the efficiency of loan use, especially when the source of low-priority loans will increase rapidly in the near future There has been no research on aid effectiveness set in the new context of Vietnam when it became a middle-income country, affected by a fundamental change in aid policy of the national community However, when the ODA capital decreases, the loans become more expensive And there has not been any doctoral project going into the effectiveness of ODA utilization, systematizing all ODA attraction and use activities in Vietnam in the past 25 years ( from 1993 to the end of 2018), an overview of the theoretical basis of the effectiveness of ODA use, criteria and models for evaluating ODA as well as analysis and assessment of the status of the process of attraction and effectiveness results of using this capital source in Vietnam in the last quarter century, from which giving directions and scientific-based solutions to increase the efficiency of ODA use in the context that Vietnam is already a national at low middle income levels and in the early stages of the ODA graduation roadmap 10 From the above comments, the graduate students found that it is necessary to have a more in-depth and comprehensive study on the theory and practice of attracting, managing and effectively using ODA for Vietnam in the context of There are many fundamental changes in the supply and demand of this capital source when Vietnam becomes a MIC country, with the appearance of new funding modalities and private sector participation to ensure the use of capital Using this capital source is really effective and sustainable for the country Therefore, the research on the topic "Enhancing the efficiency of ODA use in Vietnam" will contribute in scientific theory and practical significance for effective policy making and organization ODA capital of the donor community for Vietnam in the near future 11 CHAPTER RATIONALE AND PRACTICE ON THE EFFICIENCY OF USING ODA CAPITAL SOURCES 2.1 Overview of ODA 2.1.1 Origin of ODA In 1960, in the face of strong struggles by developing and underdeveloped countries, coupled with the changing perceptions of rich countries towards the development of poor countries, the Organization for Economic Co-operation and Development (OECD) established Development Assistance Committee (DAC) This committee is responsible for requesting, encouraging and coordinating OECD aid for developing and least-developed countries Since the first DAC report was published in 1961, the term ODA was officially used, meaning financially preferential assistance from rich countries and international organizations poor countries 2.1.2 The concept of ODA ODA is the first three letters of the phrase: Official Development Assistance, translated into Vietnamese as official development assistance or assistance Thus, ODA is the official development assistance (assistance) capital Up to now, there are many different views when defining official development assistance capital, however, the research direction of the thesis determines: “Official development assistance (ODA) includes grant aid, concessional and less concessional loans from foreign governments, international organizations, intergovernmental or intergovernmental organizations national, governmental organization authorized by the foreign government (collectively referred to as foreign donors) to support the development and prosperity of developing and underdeveloped countries (excluding aid for purely military purposes) ” This is the concept used throughout this thesis 2.1.3 Characteristics of ODA Firstly, the loan repayments are usually at preferential interest rates of less than 3% per year 12 Second, the time to use the capital is long: usually this time is from 25 to 40 years Third, the support element (Grant element - GE): must reach at least 25% Fourth, repayments in ODA must comply with the basic credit principles: Loans with repayment of capital and interest after a certain period of time; Lending as agreed upon in advance Fifth, ODA capital often comes with a certain sponsor's program or investment project Sixthly, donors not directly participate in managing and operating programs and projects but may participate indirectly in the form of contractors or expert support 2.1.4 Conditions for receiving ODA capital Condition 1: Countries receiving ODA must be those with low GDP per capita Condition 2: The objective of using ODA capital of the receiving country must be consistent with the priority direction and objectives of the donor This indicator is considered in the relationship between the ODA provider and the ODA recipient 2.1.5 ODA classification 2.1.6 The role of ODA 2.1.6.1 For investment partners In the current period when the Cold War has ended, the expansion of the market through leading economic cooperation is still on the rise, but there are still some LDC countries that receive ODA more or less politically bound Some ODA recipient countries may have to commit to supporting the donor's current independence, territorial integrity, and institutions; support that country in international organizations; have preferential treatment in terms of politics and culture for their citizens living, working or doing business in the host country or allowing for propagation and introduction of culture (ethnic traditions, language, lifestyle) of the host country 13 A higher level of influence is on the political viewpoints and decisions of the ODA-receiving countries such as changes in the political, institutional, state apparatus and heads of ODA-receiving countries 2.1.6.2 For the host country Firstly, ODA promotes investment Secondly, ODA is used effectively to help accelerate economic growth, reduce poverty and achieve social targets Thirdly, ODA promotes developing countries to improve institutions, improve the capacity of state and economic management apparatuses 2.2 Criteria for evaluating the efficiency of ODA use Evaluation of aid effectiveness through criteria to evaluate the use of ODA capital at macro and micro levels for Vietnam's economy are used in this thesis 2.3 Factors affecting the efficiency of ODA use 2.3.1 Donor factors Firstly, the real situation of the economic and political situation in the country providing aid such as economic growth, total national income; or political changes in a country Secondly, the strategies of ODA provision in each period of countries change Third, the annual budgets that governments provide to poor countries through official development assistance (ODA) change Fourth, policies and supporting principles of Donors Fifth, the international atmosphere and economic and political relationship between donor and recipient countries 2.3.2 Factors of the recipient Firstly, political institutions Second, the level of macroeconomic stability Thirdly, the system of legal documents related to the ODA adjustment process 14 Fourth, the process and harmonization of procedures is accompanied by transparency and the corruption-free environment of the recipient country Fifth, the professional capacity of officials and management boards of ODA-funded project programs and projects Sixthly, responsibility in allocating reciprocal capital and governance capacity of recipient countries 2.4 Experience in using ODA effectively in some countries and lessons for Vietnam 2.4.1 Successful experience: Korea, China, Poland, Malaysia, Thailand, Indonesia and Japan 2.4.2 Lesson learned: Philippines, Pakistan, Bangladesh, Cambodia, Democratic Republic of Congo, Tandania 2.4.3 Some comments and experiences in ODA attraction and use can be applied to Vietnamese conditions Firstly, the initiative of the recipient is an important determinant of the success of ODA attraction and effective use Secondly, recognition of ODA is important but domestic capital is crucial Thirdly, the effectiveness of ODA capital must be attached to importance rather than the amount of ODA capital Fourth, ODA always comes with economic, political conditions and each donor has a tendency to focus on certain fields Fifth, the process of developing, operating and operating ODAfunded projects must have a mechanism to attract public participation, especially the private sector, in controlling the implementation and implementation of ODA declare these projects 15 CHAPTER CURRENT SITUATION OF ATTRACTION AND USE SOURCE OF ODA CAPITAL IN VIETNAM THROUGH TIME 3.1 Overview of the situation of ODA attraction and use in Vietnam 3.1.1 Before 1993 3.1.1.1 Regarding funding sources: Vietnam only receives a few bilateral and multilateral ODA sources mainly from some socialist countries and some OECD member countries 3.1.1.2 Regarding the official development assistance fund management mechanism: During this period, due to the low ODA flows, mainly technical assistance, the mechanism of ODA management and reception was regulated by Each individual Decision of the Chairman of the Council of Ministers is now the Prime Minister for each ODA program or project 3.1.2 From 1993 to present 3.1.2.1 ODA attraction situation: In the period of 1993 - 2018, through the above-mentioned 20 CG Conferences and VDPF, the international donor community committed to provide ODA to our country with a total value of up to 78.2 billion USD ( in which: non-refundable aid is 11,647 billion USD, accounting for 14.9% of total capital; preferential loans with 66,553 billion USD, accounting for 85.1% of total committed capital) 3.1.2.2 Situation of negotiation and signing of international agreements on ODA Total ODA signed in the period of 1993-2018 reached 86096.1 million USD, of which ODA loan: 76805.576 million USD, preferential loan: 1623.31 million USD, non-refundable aid is 7667,214 million USD) 3.1.2.3 The disbursement situation (use) of ODA capital Through signed agreements, ODA and concessional loans have been disbursed by the Government of Vietnam for ODA programs/projects in the period of 1993 - 2018, estimated at about 63,291 billion USD, equaling 73.51% of the total price value of signed international agreements on ODA, and equal to about 80.93% of the total ODA committed during this period 16 3.2 Assess the current status of effective use of ODA in Vietnam 3.2.1 Macro evaluation of the efficiency of ODA use Macro evaluation of the effectiveness of using ODA capital has been implemented by the thesis on each side: ODA for economic sectors and fields; ODA for local development; ODA for public debt; ODA for economic growth; ODA for Development Investment 3.2.2 Micro assessment of the efficiency of ODA use Micro assessment of the effectiveness of ODA use is focused on evaluating the suitability, efficiency, impact, effectiveness and sustainability of the use of ODA in projects using this capital 3.3 General assessment of advantages and disadvantages in the use of ODA in Vietnam 3.3.1 Advantages Firstly, the fact that donors committed to provide ODA support to Vietnam during the past 26 years has shown their agreement and support for the Government's correct social and economic development policies and benefits that This policy gives people Secondly, the ODA that Vietnam has signed in the past 26 years, an average of about $ 3.3 billion per year, is a significant financial source, which has been used and actively supported Vietnam's efforts Comprehensive renovation cause of the country's socio-economic life Thirdly, ODA funds support research and formulate development policies, develop the institutional system of a socialistoriented market economy Fourthly, ODA capital contributes an important part in strengthening capacity, improving the quality of providing public services to society of all sectors and fields of economic and social infrastructure Fifthly, provinces and cities directly under the Central Government receive different levels of ODA capital to contribute to agricultural and rural development, combined with hunger eradication and poverty reduction; urban upgrading; public administration reform and capacity building of local officials 17 Sixthly, ODA supports the strengthening of human capacity through domestic and foreign training activities, technology transfer, knowledge provision, and sharing of advanced experience on social and economic management; Public administration reform at all levels from central to local 3.3.2 Disadvantages and causes 3.3.2.1 Disadvantages - Not fully and fully aware of the nature of ODA - The country's capacity to absorb ODA capital, as well as at the sectoral and local levels, has not yet met the requirements - The design of some programs and projects using preferential capital sources is not close to the reality of Vietnam in general and of localities in particular - In the process of attracting, managing and using ODA capital for a number of ministries, branches and localities, incidents of violations of aid management regulations of the Government and donors have occurred - The legal system and policies related to state management of aid capital is insufficient, changeable or inconsistent 3.3.2.2 The cause of the disadvantages Firstly, a large number of officials at all levels, including leaders, not fully understand the role and nature of ODA Second, failing to ensure adequate and timely reciprocal capital for programs and projects according to the schedule committed in specific international treaties on ODA which have been signed with donors Thirdly, the process and procedures for managing ODA-funded programs and projects of Vietnam are complex and inconsistent, and at the same time, there are differences compared to donors Fourthly, the law on the management and use of ODA capital has not yet been codified, and the implementation of legal documents on aid management and use is inconsistent and in some cases, it is not serious 18 Fifth, project management organizations lack professionalism The capacity and qualifications of staff involved in project management are limited, especially in localities 3.3.3 A number of issues raised to improve the efficiency of ODA use in Vietnam Firstly, in the management of ODA capital, it is necessary to raise the right awareness about the nature of this capital source with the political and economic aspects closely linked to each other on which basis to exploit the positive impact on politics and economy of ODA benefit the development of the country Secondly, the corridor and legal framework for ODA management are still inconsistent and unclear: The system of legal documents related to aid management and use is still incomplete, the implementation of The legal documents are not strictly Thirdly, public-private partnership (PPP): A new direction to attract investment calls for ODA Fourthly, it is necessary to further improve the ownership and responsibility of many managing agencies and project owners Fifth, it is necessary to fully mobilize the participation of social organizations, professionals, beneficiaries or affected by the project in the project selection, construction and implementation process Sixthly, monitoring and evaluation of ODA capital is limited to ensure debt safety 19 CHAPTER VIEWPOINTS AND STRENGTHENING SOLUTIONS EFFICIENCY OF USING ODA CAPITAL IN VIETNAM 4.1 Bases for proposing views and solutions to enhance the efficiency of ODA use in Vietnam in the coming time 4.1.1 Domestic and international contexts impact on the efficiency of ODA use in Vietnam in the coming time 4.1.2 Orientation to attract, manage and use ODA loans, concessional loans in the period of 2021-2025 - Regarding the aspect of mobilizing ODA loans, programs and projects should be designed with a large enough scale to maximize their economic efficiency by scale, with strong spillover effects, meeting development needs , but need to actively negotiate to make the most of the preferential conditions possible Besides, continue to simplify project management procedures using non-refundable aid to take full advantage of the benefits of these projects - In terms of debt repayment obligations, selectively use and focus on key industries and fields in which ODA loans are most effective It is necessary to harmonize the mobilization of domestic loans and foreign loans In particular, foreign loans should only be used to finance investment needs that require foreign currency such as technology and machinery imports - From the point of view of using capital sources, domestic and ODA loans are considered to be complementary and supporting sources, not competing with each other - The selection of priority sectors, fields, programs and projects to use ODA loans must aim to be consistent with priority for those areas that directly contribute to economic growth associated with development Sustainable development, especially given priority to the project, increases the foreign currency revenue for the country in the medium and long term Projects using ODA loans must aim at a consistent goal of using high technology and modern machinery and equipment 4.2 Orientations to increase the efficiency of ODA use in Vietnam from now to 2025 20 Entering the period after 2020, the development cooperation relationship between Vietnam and the donor community will have significant changes in nature, from the lending and borrowing relationship, this new relationship will need to be rebalanced in a more diverse direction The strategic framework of ODA loans and development cooperation in Vietnam in this period should focus on the following basic issues: 4.2.1 Change the perception view on ODA loans 4.2.2 Institutional strengthening, strengthening the selection, appraisal, monitoring, evaluation and allocation of public investment projects capital 4.2.3 Develop a set of criteria for selection of ODA loan projects according to international practices and standards 4.2.4 Diversify development investment funds and create competition among donors 4.2.5 Have a long-term vision, actively take the initiative in cooperation with development partners 4.3 Main solutions to increase the efficiency of ODA use in Vietnam 4.3.1 Enhancing the efficiency of ODA use in keeping with the criteria towards the country's sustainable development 4.3.1.1 Using ODA funds closely follows the criteria of the quality of economic growth 4.3.1.2 Use of ODA capital closely follows the criteria of social sustainable development 4.3.1.3 Using ODA capital sources closely follow the criteria of environmental sustainable development 4.3.2 Complete synchronous corridors and legal framework on ODA management and use 4.3.2.1 Streamlining the process and supplementing agreements related to international treaties on ODA 4.3.2.2 Complete legal documents, policy framework for ODA 4.3.3 Develop mechanisms for private sector to access ODA and replicate Public-Private Partnership (PPP) model 4.3.3.1 Develop mechanisms for the private sector to access ODA 21 4.3.3.2 Replicate public-private partnership model 4.3.4 Promote disbursement progress of ODA-funded programs and projects 4.3.4.1 Improve the quality of project document preparation, feasibility study reports; to shorten the time for negotiating, signing, preparing and implementing ODA-funded programs and projects 4.3.4.2 Further harmonization of policies, procedures and procedures on compensation, land clearance and resettlement, procurement and bidding and financial management between Vietnam and donors 4.3.4.3 Strengthening coordination and close coordination among state management agencies on ODA, managing agencies, project owners and donors 4.3.5 Enhancing the ownership role, enhancing the active participation of social organizations and promoting transparency in ODA management and use 4.3.5.1 Further enhance the ownership role of the managing agencies and project owners 4.3.5.2 Ensure transparency, improve accountability, and strengthen supervision and evaluation 4.3.6 Enhancing counterpart fund, especially reciprocal capital for site clearance and resettlement for construction investment projects 4.3.7 Develop a roadmap to gradually reduce the dependence of the economy on ODA 4.4 Some recommendations to the Government, National Assembly and donor community 4.4.1 Recommendations to the Government - It is necessary to streamline and consolidate a number of focal points of ODA management and allocation agencies to avoid overlapping, loss of time and inefficiency in direction - Need to promote the effectiveness and impact of Consultative Group Meetings and donors, - Direct the governing bodies to review and evaluate the disbursement capability of each project, urgently deploy procedures for transferring the foreign capital plan allocated from the central budget from the low disbursement project to the project with The ability to disburse is higher according to current regulations 22 - It is necessary to prepare the mind for the ODA withdrawal strategy 4.4.2 Recommendations to the National Assembly: The National Assembly soon promulgated the Law on ODA management and use There should be regulations on the responsibilities of the National Assembly, the rights of the people, the press, and professional associations in the process of deciding on ODA implementation Monitoring of ODA should be conducted, addressing gaps in policies, relevant interest groups in both the domestic and donor countries, analyzing the advantages and disadvantages of ODA, and suggesting a strategy to use Selective ODA follows a gradual reduction path towards termination 4.4.3 Recommendations to donors Firstly, build a reliable partnership and share responsibility between Vietnam and donors Secondly, step by step change the method of transferring ODA capital to Vietnam from the project mode to the method of transferring capital directly into the state budget for Vietnam, so that Vietnam can decide its own investments Thirdly, along with the process of changing the mode of capital transfer, the donor community also needs to consider granting more authority to the Vietnamese side in selecting the appropriate procurement of goods and services with practical conditions and circumstances of Vietnam within the framework of ODA loan programs and projects Fourthly, donors also need to consider increasing the proportion of grant aid in the total annual official development assistance to help Vietnam overcome the consequences of natural disasters, reduce poverty Fifth, increase the technical assistance to transfer advanced and modern techniques and technologies, improve the capacity of state management staff at all levels on this issue Sixth, donors should develop project guidelines to simplify the project and harmonize some of the donor's main procedures with some Vietnamese procedures 23 CONCLUDE So far, ODA has really become an "important source of foreign capital", which has contributed greatly to the economic development process in Vietnam in the past 26 years However, through an analysis of the effective situation of ODA use in the period of 1993-2018, it shows that the ODA management policies and mechanisms are still inadequate, inconsistent and dispersed among housing management agencies In particular, the country, especially the management mechanisms, has not kept pace with the growth in the number and form of donors entering into the ODA supply relationship with Vietnam Although the number of ODA programs/projects and the amount of disbursed capital have increased sharply, the sanctions on loan inspection, supervision and supervision so far in these programs/projects have been based on "Coordination mechanism" between state management agencies on ODA This situation has led to a series of negative cases in programs/projects that were rarely warned or prevented from the beginning From that situation, the thesis thinks that to continuously improve the proportion of ODA disbursement for key projects, socioeconomic infrastructure, poverty reduction programs especially If the budget goes hand in hand with the efficiency of capital use, attaching the responsibility of using the capital with the debt repayment obligation, in the coming time, it is required that the State management mechanisms and policies on ODA must continue to be supplemented, amended and completed in order to constantly improve the effectiveness and efficiency of strong cash flows but always hiding in it the risks of debt, the possibility of payment loss in the future Based on the international experience research and practical innovation of ODA management policies and mechanisms in Vietnam in the period of 1993-2018, the thesis has given the orientation and proposed a number of solutions that are both general and comprehensive both specific concrete scientific basis, clear practical and high feasibility in the implementation process If these measures are implemented fully and synchronously, it will surely contribute to enhancing the efficiency of ODA use in Vietnam in the coming time./ 24 ... for ODA and the efficiency of ODA use in Vietnam The research results of the thesis will be a reference for state management agencies on ODA and ODA policy makers in orienting and defining ODA. .. effectiveness of using ODA capital has been implemented by the thesis on each side: ODA for economic sectors and fields; ODA for local development; ODA for public debt; ODA for economic growth; ODA for Development... efficient use of ODA Chapter 3: Current status of ODA attraction and use in Vietnam over the past time Chapter 4: Viewpoints and solutions to enhance the efficiency of ODA use in Vietnam CHAPTER OVERVIEW