The impacts of official development assistance on vietnams economic growth from 1993 to 2020

HỌC VIỆN CHÍNH SÁCH VÀ PHÁT TRIỂN VIỆN ĐÀO TẠO QUỐC TẾ SENIOR THESIS THE IMPACT OF OFFICIAL DEVELOPMENT ASSISTANCE ON VIETNAM’S ECONOMIC GROWTH IN THE PERIOD 1993-2020 Supervisor: Mr Dao Hoang Tuan Student: Le Thi Thu Thuy Student ID: 5083106552 Class: KTĐN CLC 8.2 Hanoi, March.2021 ACKNOWLEDGEMENT A completed study would not be possible without help As a result, the author gratefully acknowledges their assistance and encouragement during the course of conducting this research as a requirement of completing my Bachelor's degree in International Economics First and foremost, I'd like to convey my heartfelt gratitude to advisor, Dr Dao Hoang Tuan Throughout the execution of my thesis, he was a constant source of encouragement and advice His words of encouragement and criticism have really enhanced and improved my work The thesis would have been difficult to complete without his drive and directions My heartfelt gratitude goes out to my parents for their never-ending love, care, and encouragement throughout my life I'd also like to express my gratitude to my siblings, brothers, and sisters for their constant support and care Finally, I want to express my gratitude to all of my friends who helped me during my stay at the Academy of Policy and Development Their kind assistance, concern, and motivation gave me strength and enabled me to overcome all of my difficulties for the rest of my life Student Le Thi Thu Thuy i CONTENTS ACKNOWLEDGEMENT i CONTENTS ii LIST OF TABLES, CHARTS, DIAGRAMS iv LIST OF FIGURE v INTRODUCTION BEGINNINGS Reason for choosing topic 2 Research scope 3 Research goals and tasks Research Methods Theme structure THE BODY OF THE STUDY CHAPTER 1: THEORETICAL BASIS OF OFFICIAL DEVELOPMENT ASSISTANCE 1.1 Overview of ODA capital 1.1.1 The definition of ODA capital 1.1.2 The origin of ODA 1.1.3 The characteristics of ODA capital 1.1.4 The classification of ODA capital 1.2 The role of ODA in economic development 11 1.2.1 ODA is an important source of additional capital for development investment 12 1.2.2 Access to advanced scientific and technological achievements and human resource development (technology spill-over) 12 1.2.3 ODA is playing an important role in improving socio-economic indicators 13 1.2.4 ODA helps contract other sources of international investment 14 1.3 International best practice 17 CHAPTER 2: THE SITUATION OF ODA ATTRACTION AND USE AND ITS IMPACTS ON THE VIETNAMESE ECONOMY 23 2.1 The overview of Vietnam's economic development and the influence of ODA on that development 23 ii 2.2 The status of ODA capital mobilization 26 2.2.1 Vietnam's regulations on management of capital attraction and use 26 2.2.2 The process of managing and utilizing ODA 30 2.2.3 The priority areas and donors of funding for Vietnam 34 2.2.4 The current situation of ODA capital mobilization 36 2.3 The current status of capital management and use 37 2.3.1 The situation of capital management and use in the period 1993 -2020 .37 2.3.2 Empirical evidence of impact of ODA on economic growth in Vietnam .42 2.4 Some basic successes, reasons for limitations in management and use of capital 51 2.4.1 Basic successes in management and use of ODA 51 2.4.2 Reasons for the limitation 52 CHAPTER 3: SOLUTIONS TO IMPROVE THE EFFICIENCY OF CAPITAL USE IN VIETNAM 54 3.1 The environment in which ODA is attracted to and used 54 3.1.1 In the world 54 3.1.2 In Vietnam 57 3.2 Solutions to improve the efficiency of capital use in Vietnam 59 3.2.1 Improve the legal environment 59 3.2.2 Perfection of the right management method and model; tight project management to prevent loss and waste 61 3.2.3 Carefully prepare, detail the project preparation stages to ensure convenience during the implementation of infrastructure projects 61 3.2.4 Training, fostering and improving management and professional skills for staff working on projects 62 3.2.5 Improve the implementation of programs and projects, promote disbursement 63 3.2.6 Strengthening the monitoring, supervision and evaluation work 63 THE CONCLUSION 64 REFERRENCES 65 iii LIST OF TABLES Table Official foreign support for Korea (Unit: billions of dollars at current prices) 18 Table The ODA’s effectiveness in Korea's development period 19 Table Distribution of Korean grants (1945-1961) 20 Table 4: Situation of public debt and ODA debt of Vietnam in the period 2002-2006 43 iv LIST OF FIGURE Figure The ODA allocation ratio for fields from 2006 to 2010 29 Figure The percentage of ODA allocated by sector in the period 2011 - 2015 35 Figure The proportions of ODA loans in ODA capital from 1993 - 2012 36 Figure The ODA signed and disbursed from 2011 to 2015 37 Figure The ODA commitment, signed ODA and ODA disbursement in 1993 -2012 38 Figure The total ODA and Official Aid in Vietnam from 2000- 2017 39 Figure The net official development assistance from 1960 to 2014 .55 Figure Top 10 recipients of ODA from DAC countries in the period 2009- 2018 56 v INTRODUCTION Globalization now needs each country to be proactive in international integration, in order to promote its available potentials and make the most of external resources, in line with the general trend of the world economy International cash flows, particularly ODA, appear to aid developing countries ODA, in particular, is a critical role in determining developing countries' economic growth After more than 30 years of rehabilitation, Vietnam has made significant progress in the socioeconomic development process With the given Vietnam's low degree of economic development and limited ability to amass capital outside of domestic capital, official development assistance (ODA) has laid the groundwork for the country to attract foreign resources Donors have given Vietnam with a significant source of financing throughout the last 20 years, assisting with economic reform and international integration Vietnam currently has over 50 active international and bilateral donors who give ODA and concessional loans to the country's main socioeconomic sectors and fields For many years, this has been a reliable source of foreign currency, helping to improve the balance of international payments, increase foreign exchange reserves, and stabilize the exchange rate Unfortunately, there are other fundamental restrictions to attracting and using ODA funds, such as not maximizing capital sources, a delayed payment process that causes business disruption, and so on The aforementioned flaws have a substantial impact on the country's economic development Recognizing the importance of ODA, I undertook the project "The impact of ODA on Vietnam's Economic Growth in the Period 1993-2020" to research and learn more about the current state of management activities and ODA capital use, evaluate the results achieved and limitations of ODA capital, analyze the impacts of this activity on Vietnam's socio-economic recommendations development, and make BEGINNINGS Reason for choosing topic International integration is becoming an unavoidable tendency for countries, and Vietnam is no exception: it is gradually becoming more integrated into the economy This is also an opportunity for rich countries to provide assistance Official development assistance makes a substantial contribution to the achievement of the country's socio-economic objectives (ODA) Many accomplishments in the domains of transportation, hunger eradication and poverty reduction, industrialisation and modernization have all benefited greatly from ODA In recent years, the effect of oda capital has shifted substantially in several industries, helping Vietnam's economic growth ODA has aided in the rehabilitation and building of various infrastructure projects, as well as the expansion of social indicators, job creation, poverty reduction, and improvement, particularly from 1993 to the present make a difference in people's lives Aside from the achievements, the impact of ODA on Vietnam's economic growth has had numerous limits in the past, such as not optimizing the efficiency of recruiting and utilising capital As a result of this reality, identifying the weak points in the process of attracting and using capital, as well as suggesting measures for improvement, is critical for any country It assists the receiving country in establishing a clear direction and development goals, directing departments and individuals toward the shared goal of the common economy, and preventing waste and abuse of aid resources Today's global economy moves at a breakneck pace, requiring each country to be proactive and inventive in order to keep up As a result, I have decided to write my senior thesis on "The Impacts of Official Development Assistance on Vietnam's Economic Growth from 1993 to 2020." It highlights the accomplishments that have been made, as well as the limitations that still exist in the project's implementation, through an analysis and appraisal of the current condition of attracting and deploying ODA funds, from which to have an overview of ODA use over time this wealth, and so provide ways for attracting and utilizing this capital in the future 2 Research scope The main issue of the thesis is "The impact of ODA on Vietnam's economic growth in the period 1993-2020", in which the topic focuses on researching to answer the following questions: How effective are the activities of attracting and using ODA capital in Vietnam? What is capital optimization strategy planning? Purpose and role of strategic planning Model/content of Vietnam's strategic planning activities to attract and use ODA? The successes, limitations and causes of difficulties in the process of strategic planning to optimize aid sources for the country? The most feasible solutions and proposals for planning development strategies to attract and use ODA for the country? Research goals and tasks 3.1 General goal The overall goal of the study is to analyze and propose solutions to positively "The impact of ODA on Vietnam's economic growth" 3.2 Detail goals On the basis of the general goals that have been established for the above research thesis, in more detail, the topic is researched to solve specific goals: Systematize the theoretical basis for the deployment of ODA in Vietnam and internationally Research and analyze the current situation of attracting and using aid sources in Vietnam in the period 1993-2020 Proposing, perfecting the implementation of the development strategy and optimizing the use of aid resources in Vietnam Research Methods 4.1 Research Process The topic identifies and analyzes research questions using the knowledge of the world monetary theory module Methods of investigation: Secondary data, such as studies on the state of attracting and utilising ODA in Vietnam, are combined with Vietnamese decrees and economic strategies to provide answers 4.2 Data collection methods 4.2.1 Secondary data collection method I used secondary data from both inside and outside the Vietnamese market to finish the thesis The information contained within the Vietnamese economy includes references to the establishment and growth of ODA capital, as well as the current state of soliciting and utilizing aid sources Reference books on policies, economic laws, articles on the state of the Vietnamese economy in recent years, and articles about Vietnam's progress are examples of secondary data outside the Vietnamese market on a number of economic and government websites, build and estimate the trend of activities to attract and employ ODA funds 4.2.2 Primary data collection method The research paper's primary data is acquired through the use of questionnaires For the research topic, students at the academy collect data on the status of attraction and the use of gifts from Vietnam in recent years Observation and data collection methods: Directly follow news items and reports from official forums 4.3 Data Analysis Methods Since expert interviews are the primary method of data collection, I analyze the collected data primarily using qualitative methods, combining the principles of basic innovative thinking, logical system approach, dialectical materialism, and historical materialism with statistics and analysis for the purpose of studying and placing it in the broader context Theme structure In addition to the introduction, table of contents, list of tables, figures, acronyms, appendices and conclusion, the thesis consists of main chapters: Chapter 1: Theoretical basis of official development assistance Chapter 2: The situation of ODA attraction and use and its impacts on the Vietnamese economy Chapter Solutions to improve the efficiency of capital use in Vietnam Foreign debts in general, and ODA loans in particular, are currently within safe bounds, with manageable interest rates, terms, and loan currencies Foreign debt, particularly official development assistance (ODA), is a vital financial source for supplementing the state budget, ensuring development investment, economic growth, infrastructure investment, and resolving security issues social welfare, particularly poverty reduction, the improvement and consolidation of legal institutions, and the development of close international partnerships are all priorities 2.3.2 Reasons for the limitation Aside from the successes, the job of soliciting, administering, and especially deploying ODA money in the recent development period highlighted a number of flaws, restrictions, and roadblocks Many issues develop during the implementation of ODA programs, including losses, waste, neglect, and a lack of science in program design, management, and usage of ODA Although there are other factors that contribute to this predicament, the following are some of the most significant: First, many officials at all levels, including leaders, are unfamiliar with the role and nature of ODA Subsidies have an impact on the management and utilization of ODA funds On the other side, because of the government borrowing and allocating to the locality, the locality has the idea that they are not under any obligation to pay debt or interest, resulting in many projects being undercapitalized Second, appropriate and timely reciprocal capital for programs and projects, as stipulated in international treaties, is not possible, particularly in the case of ODA signed with donors Due to complex and complicated compensation and resettlement work, as well as inconsistent and shifting regulations and methods, construction projects frequently fall behind schedule Third, the country's capacity to absorb ODA capital, as well as at the sectoral and municipal levels, has fallen short of expectations Many programs and projects have yet to be completed As a result, compared to the signed ODA capital, the entire country's disbursement was low Our country's capital distribution rate is lower than the average disbursement rate of ten percent for comparable aid 52 recipients According to ADB estimations, increasing Vietnam's ODA payout rate can boost GDP growth by 0.5-1 percent Fourth, the process and procedures for managing programs and projects using Vietnam's ODA are still complicated and asynchronous, with differences compared to donors, particularly in the three stages of critical work, which include procurement, compensation, migration and resettlement, and financial management of programs and projects, which lead to the status of "dual" approval Only 4% of ODA money is spent according to procurement rules, and only 3% is spent using Vietnam's public financial management system; the remainder is spent according to donor guidelines According to Vietnam's rules, the rate of application for environmental and social impact assessment reports is percent and 0.4 percent, respectively Many projects requiring loan financing must carry out two systems of procedures at the same time due to overlap, which increases expenses, preparation time, and delays project delivery Fifth, the legal structure and laws governing the state's handling of ODA funds are ineffective, inconsistent, and asynchronous Legal documents governing the management and use of aid have not been consistently implemented, and in certain cases, execution has been haphazard Coordination within ministries, sectors, between central and local levels, and with funders is not always seamless, particularly in areas where multiple donors or programs and projects are involved multi-objective and multi-level in particular, there are flaws in the government's policies for soliciting, deploying, and managing ODA funding, making it impossible for the private sector to access it Sixth, there is a lack of professionalism in the project management organization The capacity and professional qualifications of project management workers are low, particularly in rural areas Project Management Unit staff are frequently insecure, with many working part-time Project management training has not been done on a consistent, systematic, and methodical basis 53 CHAPTER 3: SOLUTIONS TO IMPROVE THE EFFICIENCY OF CAPITAL USE IN VIETNAM 3.1 The environment in which ODA is attracted to and used 3.1.1 In the world The world's ODA development process is currently characterized by the following primary trends: First, the proportion of bilateral ODA tends to increase in the whole structure of total ODA, while multilateral ODA tends to decrease The following two main factors have influenced this trend: the process of internationalization of world economic life and the trend of integration have created favorable conditions for direct ODA relations between countries; and the performance of some multilateral organizations has proven ineffective, causing some donors to hesitate to contribute to these organizations The share of bilateral aid in overall ODA has climbed dramatically, while the share of multilateral aid has declined Second, the level of rivalry among developing nations for ODA is increasing According to the World Bank, developing countries in Asia would require up to $1400 billion in infrastructure building between 1995 and 2004 Meanwhile, in Asia, a market for long-term infrastructure loans of 20-30 years has yet to emerge This would be one of the driving forces behind the heated competition among developing nations for ODA funds Official development assistance (ODA) from DAC countries to developing countries increased steadily between 1960 and 1990 Meanwhile, the percentage of ODA in DAC countries' national income (GNI) - a metric used to assess funding fell between 1960 and 1970, then fluctuated between zero and zero For nearly two decades, the rates have been 27 percent and 0.36 percent, respectively Due to the substantial impact of the world economic crisis in the early 1990s on the world economy, ODA has dropped in both real and nominal value since the 1990s ODA inflows fell by 16 percent between 1993 and 1997 Meanwhile, ODA's share of GNP has dropped from 0.33 percent in 1992 to a new low of 0.22 percent (1997) 54 Figure The net official development assistance from 1960 to 2014 From USD 59 billion in 1997 to USD 107.1 billion in 2005, net ODA increased by USD 59 billion The donor countries' ODA to GNI ratio grew to 0.33 percent in 2005, up from 0.26 percent in 2004, and reached its highest level since 1992 However, after reaching a high of US$104.4 billion in 2005, net ODA decreased to US$104.4 billion in 2006, and then to US$103.7 billion in 2007 In terms of market share, ODA has decreased In 2006, the rate was 4.5 percent, while in 2007, it was 8.4 percent This decrease was primarily due to the end of a long period of debt aid increases that began in 2002 Despite the recent global financial crisis, ODA flows have continued to rise since 2008 In 2010, ODA flows reached a record high of 128.7 billion USD, an increase of 6.5 percent over 2009 This is the actual level of ODA, which has surpassed all previous records, surpassing the total amount of ODA delivered in 2005, when debt aid soared unexpectedly The net ODA to gross national income (GNI) ratio was 0.32 percent, the same as in 2005 55 and the highest level since 1992 However, this gain falls short of the 0.7 percent target set for 2015 ODA on a multilateral basis Figure Top 10 recipients of ODA from DAC countries in the period 20092018 In 2018, the OECD Development Assistance Committee (DAC)'s members donated US$153.3 billion in ODA (Official Development Assistance) After being spread out through a number of complex procedures and systems in donor countries, ODA was disbursed to 155 countries The top 20 countries that received the most aid from 2009 to 2018 are listed above In 2018, the DAC donor countries committed around US$2.7 billion to Afghanistan's development, a percent decrease from 2017 With over US$920 million, the United States of America was the largest donor to Afghanistan Germany contributed $438 million, while the UK rounded out the top three donors to Afghanistan with $331 million Although the amount of ODA granted to Syria has increased from US$62 million to US$2.5 billion since 2009, the amount of ODA provided by DAC countries has decreased by 2.5 percent since 2017 With nearly US$760 million in 56 aid to Syria in 2018, Germany was the greatest donor The United States contributed over US$695 million, while the United Kingdom rounded out the top three with US$308 million Since 2009, the amount of ODA given to this least-developed country has increased nearly thrice, with a modest drop from 2014 to 2016 In 2018, Japan gave almost US$1.2 billion in ODA, accounting for half of all ODA In 2018, the United States and the United Kingdom gave Bangladesh $325 million and $253 million in official development assistance, respectively The 30 members of the OECD's Development Assistance Committee (DAC) provided US$153.3 billion in Official Development Assistance (ODA) in 2018 The ODA was dispersed to 155 nations after going through a series of complicated procedures and systems in the donor countries In today's piece, we'll look at the top ten recipients of ODA in 2018, as well as the countries and donors who helped them 3.1.2 In Vietnam Since its inception in Vietnam in 1993, ODA has steadily grown in terms of committed capital, signed capital, and disbursed money This money has helped Vietnam's socioeconomic development and poverty reduction efforts The areas that receive the most ODA are social infrastructure and economic infrastructure The majority of ODA to Vietnam is borrowed capital from the public sector When Vietnam became a middle-income country, however, the quantity of ODA promised and disbursed into the country fell dramatically If the World Bank's rules are followed, Vietnam will no longer receive concessional loans from the International Development Association (IDA) in 2017 Attracting and utilizing this external resource is a significant problem From 2010 to 2014, the amount of ODA disbursed in Vietnam tended to rise, but then began to fall from 2015 to 2017, as donors began to reduce ODA to Vietnam Furthermore, since July 1, 2017, Vietnam has been designated as an excellent ODA industry by the World Bank This means that Vietnam no longer receives preferential loans from the World Bank's International Development Association (IDA), but instead must accept less favourable loans, progressively 57 moving toward borrowing based on market circumstances Vietnam was also classed by the Asian Development Bank (ADB) as group B, a group of mixed borrowers who did not just get preferential loans Vietnam, on the other hand, has successfully negotiated and developed a three-year support mechanism for ODA graduation in order to boost and sustain the economy throughout the early phases of graduation Despite significant ODA contributions, the transportation system has not yet grown to its full capacity and has failed to meet demand Some metropolitan areas, particularly in large cities such as Hanoi and Ho Chi Minh City, are heavily populated Ho Chi Minh City's transportation infrastructure has not kept up with the city's economic expansion, and traffic jams and traffic jams are nevertheless common The road is still difficult to travel in certain rural locations, particularly in remote and steep areas Many roads, bridges, and other structures are deteriorated or severely damaged, but due to a lack of foreign capital and counterpart capital, there is insufficient resources to spend in repairs and new construction The allocation of counterpart capital plan is very low in comparison to the need, which has a significant impact on project implementation progress and may result in complaints and litigation from international contractors, resulting in compensation This is also one of the reasons why ODA is being disbursed slowly in comparison to the commitments made to international donors Vietnam's energy growth is on track, but it is a complex field that will require further resources to expand The successful use of ODA and concessional loans is shown in the significant development of the power system in terms of power sources, transmission grids, and distribution grids, boosting transportation dependability and safety mechanism of operation Programs and projects have a meaningful impact on investment in the development of the power industry, contribute significantly to economic growth and enhance people's lives, and contribute significantly to the cause of industrialization and modernization Although the situation regarding the implementation and disbursement of ODA programs and projects, as well as concessional loans, has improved, it is still slower than envisaged Many projects are still stalled, and capital distribution is slow The 58 degree of disbursement across years relative to the level of commitment is still inconsistent First, especially in the case of Vietnam, ODA is not a long-term source of concessional capital Vietnam has only a few years left to apply for IDA preferential loans As a result, Vietnam must wisely allocate ODA to assist socio-economic development, hunger alleviation, and poverty reduction The fact that ODA donors will gradually modify aid sources, relinquishing capital to poorer countries as Vietnam becomes more prosperous It is a difficulty for the transport industry in a low-middle-income country when the budget is still tight and private sector investment resources are restricted Second, as a middle-income country, Vietnam's ODA capital is primarily ODA with less favorable terms, and it is gradually heading toward market terms Currently, the debt load imposed by ODA is becoming increasingly enormous, accounting for roughly a quarter of the total dispersed ODA capital, because this source of money typically comes with donor limits and produces a debt burden subsequently Third, ODA in the sphere of social and economic infrastructure construction has played a vital role in assisting Vietnam in meeting the Millennium Development Goals by 2015, but it is also a source of ODA debt Because ODA in essential areas like as transportation and energy accounts for more than 95 percent of ODA loans, and projects in these two industries are typically implemented over a lengthy period of time with progress, for Vietnam Because of the slow pace, there are numerous projects with capital, making repayment of ODA loans problematic 3.2 Solutions to improve the efficiency of capital use in Vietnam 3.2.1 Improve the legal environment To get across the decentralization of ODA capital management in more detail: clearly define the responsibilities and powers of the management levels, the Government, the Prime Minister, and the localities; clearly define the responsibilities and powers of the project management units, especially specifying the degree of independence of project management as well as their dependence on the governing body; clearly define the responsibilities and powers of the project 59 management units, especially specifying the degree of independence of project management as well as their dependence on the governing body Optimizing the effectiveness of project oversight, monitoring, and evaluation: Periodical reporting and project completion reports are strictly enforced, and ODA projects are audited in conformity with existing Vietnamese rules Donors and males Harmonize the project monitoring, monitoring, and evaluation reporting systems across funders, as well as between donors and the Vietnamese government Creating a system of reporting forms for each field's project monitoring, monitoring, and evaluation Encourage community supervision and expand it Budget management, reciprocal capital, and on-lending mechanism (interest rates, loan repayment, and repayment duration), capital withdrawal processes, taxes for ODA projects, and so on are the key contents of the management of the domestic financial mechanism for ODA projects Even if it is a non-refundable ODA project, this approach must be clearly described so that project owners can actively calculate the effectiveness of the financial results of the project In terms of capital allocation mechanisms, there is more flexibility in allocating ODA compared to domestic sources, allowing governing ministries and municipalities to transfer funds between projects within their management jurisdiction and notify finance and treasury authorities for funding on time A reserve fund devoted to ODA projects should be established in the state budget and utilized to augment the reciprocal capital plan for projects that begin after the planning period or for projects that lack capital There is insufficient reciprocal capital to pay taxes, maintain towns, and so on Each ODA's capital should be allocated to the relevant place Capital should be allocated to the correct address of each specific ODA program or project, not arbitrarily allocated for other purposes Simplify dossiers to attract capital: simplification is advocated in the direction of removing unneeded and unjustified dossier components to make administrative procedures easier for businesses and minimize implementation costs As a result, with the proper policy orientations, the compliance of ODA management and usage principles, as well as the improvement of the legal system, the synchronized implementation of solutions, and the attraction and management of ODA capital 60 The use of ODA capital will be more efficient, resulting in significant advantages to the country's economic and social growth 3.2.2 Perfection of the right management method and model; tight project management to prevent loss and waste The management mechanism must be improved in the following directions: To begin, establish a management mechanism in which the project management board is responsible for the entire project, from planning to implementation, acceptance, and operation in front of the investor and target audience Beneficiaries Define the legitimacy of project management in terms of assuring professionalism, increasing transparency, reducing closeness, and increasing self-responsibility Second, as the State's legal agent in the use of capital, the investor must accept explicit responsibility for his or her work in terms of advancement and quality before the State At the same time, clearly identify the decision-makers' roles As a result, the investor is forced to select a project management board of true quality that meets the job's needs, avoiding a closed scenario in capital construction investment management Third, establish tight project management board working regulations, a salary policy, and a clear and open operating budget At the same time, there is a stringent reward and punishment system: the investor has a reward system when the work is not lost, satisfies the quality requirements, and is completed on time If civil workers or officials of the project management board make mistakes, they will be harshly penalized through inspection and examination, and the leader will be held jointly liable 3.2.3 Carefully prepare, detail the project preparation stages to ensure convenience during the implementation of infrastructure projects In order to assure the project's implementation progress as well as its socioeconomic efficiency, more attention should be devoted to the project's planning and preparation in the future, with a greater emphasis on the following aspects: 61 For starters, one of the early-stage challenges to project planning is improper money allocation As a result, a sufficient budget must be prepared to assure the effectiveness of this task Second, there must be a plan in place to address the relocation issue from the start of the project The stage of site clearance and resettlement causes the majority of the delays in infrastructure development projects People in the cleared region must have their legitimate interests considered, not just in terms of resettlement, but also in terms of employment creation for those who have lost their arable land, homes, and business locations Finally, when it comes to project preparation, there should be more coordination with donors Because the donor's project preparation procedure differs much from that of the Vietnamese government, harmonization must be achieved to lessen the government's burden Under the persistent direction of the government, the parties have shared information, consultation with partner agencies, proactive and aggressive cooperation between donors and the government, as well as industrial development strategies Decisions made by the government are crucial 3.2.4 Training, fostering and improving management and professional skills for staff working on projects An essential component in being able to efficiently deploy ODA in Vietnam is the degree of human resources in various linked sectors such as design, engineering, management, and operations As a result, for ODA investment, additional focus should be directed to human resource training Nominate professionals in critical research fields such as information technology, environmental management, and plant variety research in agriculture to help increase management efficiency in a variety of industries Domestic university training and overseas training through international cooperation programs, with highly qualified international specialists, to effectively absorb and implement sophisticated and high technology Train qualified workers and effective managers Hire international professionals and engineers to work on ODA projects in Vietnam so that they can gain experience and transmit technology in high-tech projects 62 Appropriate government policies address the relationship between training, employment, and compensation, as well as the relationship between training and future training Having measures in place to recruit qualified employees and managers, as well as preventing brain drain following training abroad 3.2.5 Improve the implementation of programs and projects, promote disbursement State management agencies in charge of ODA and concessional loans must work closely with governing bodies, project owners, and donors to organize periodic reviews of program preparation, implementation, and projects, as well as propose solutions to speed up the signing process and increase the disbursement rate The governing bodies strengthen project owners' guidance and support in order to quickly resolve ODA and concessional loan program and project obstacles and problems Continue to unify regulations and procedures between the Vietnamese government and donors, including institutionalizing some proactive measures to reduce project start-up and preparation time project as soon as relevant international treaties on ODA and concessional loans take effect, simplifying procedures for supplementing and revising international treaties on ODA and concessional loans during project implementation 3.2.6 Strengthening the monitoring, supervision and evaluation work Completing the management information system and data on ODA and concessional loans, as well as generating national statistical indicators on signed ODA loans of closure and disbursing, would help to improve monitoring, oversight, and evaluation Improve staff capacity, design and implement punishments to guarantee adherence to legislative provisions governing the monitoring, supervision, and evaluation of ODA and concessional loan management Improve community monitoring and oversight by strengthening institutions, establishing a conducive climate, and encouraging community engagement, thereby assuring the effective use of ODA and incentive loans, as well as the prevention of loss, waste, and corruption 63 CONCLUSION Once again, ODA has a significant impact and is critical to the socio-economic development of Vietnam's economy Over the years, ODA has helped to improve infrastructure, restructure the economy, and attract other kinds of aid and investment, all of which have aided the country's economic progress Aside from the accomplishments, there are still restrictions in the use of ODA money in the past, from which to develop solutions to address the deficiencies and attract this capital in the near future When the global trend of ODA aid declines in the next years, ODA mobilization in general will become increasingly difficult to achieve The country's ODA target necessitates the collaboration of all relevant departments and agencies Building on the successes achieved over many years of implementing ODA projects, with a team of dedicated human resources from government agencies, project managers, consultants, and contractors involved in project implementation Projects for domestic and international bidding We expect that Vietnam's economy will expand quicker and stronger in the future years, achieving the established targets and striving for new heights Because of my limited knowledge and time during the study procedure, my thesis research has numerous flaws Looking forward to receiving advice from the teachers as well as my coworkers to help me improve my work 64 REFERRENCES Asia Fund 2014, “Appendix – Data on aid flows to some East Asian countries from non-DAC members” AZSA Co., Ltd 2016, “Country Support Assessment Report in Vietnam” Decision No 251 / QD-TTg: Approving the project "Orientation for attracting, managing, and using ODA and concessional loans of foreign donors in the 2016-2020 period." issued on February 17, 2016 Decision No 251 / QD-TTg: Approving the project "Orientation for attracting, managing, and using ODA and concessional loans of foreign donors in the 2016-2020 period." issued on February 17, 2016 Decision No 251 / QD-TTg: Approving the project "Orientation for attracting, managing, and using ODA and concessional loans of foreign donors in 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Government (2018), Decree No 132/2018/ND-CP amending Decree No 16/2016/ND-CP on management and use of official development assistance (ODA) and concessional loans treat; 13 Huong Giang and Vu Thanh Thuy 2013, “Looking back on 20 years of ODA attraction”, Lattanzio Advisory 2017, “Vietnam-Denmark: Transforming Partnership – Consolidated Report”, 14 Marcus Cox and Tran Thi Hanh 2014, “Financing the Sustainable Development Goals (SDGs) of a Middle Income Vietnam” 15 Ministry of Planning and Investment (2011), Project on orientation to attract, manage and use ODA in the period 2011-2020, pp 34-38 16 Nguyen Van Chinh 2013, “Recent Chinese migration to Vietnam” AidData 2017, “The Global China Official Donor Dataset of Aid Data, 2000-2014, Version 1.0” 17 Thanh Nam 2016, "Improve the efficiency of using ODA capital", 18 World Bank 2004, “Country Data – Vietnam”, 19 World Bank 2004, “Country Data – Vietnam”, 20 World Bank 2009, “GNI per capita, Atlas method (current USD)” ... scope The main issue of the thesis is "The impact of ODA on Vietnam's economic growth in the period 1993- 2020" , in which the topic focuses on researching to answer the following questions: How... negative international balance of payments The transition from the state's central economic policy to one that encourages the economy to develop 13 toward the development of the private sector necessitates... Theoretical basis of official development assistance Chapter 2: The situation of ODA attraction and use and its impacts on the Vietnamese economy Chapter Solutions to improve the efficiency of