1.3.1.1. The legal framework for ODA management and use is not synchronized with international practice
The State has issued and supplemented many legal documents, clearly defined functions and duties of government agencies in coordinating, managing and using loans and international funding.
Functional ministries and branches also issued specific guiding circulars for inter-ministerial activities related to ODA implementation process.
However, the promulgated legal documents system is still inconsistent and there are many points that are inconsistent with international practices, leading to a lack of matching between domestic processes and procedures prescribed by foreign countries (tax policies, compensation and clearance policies, resettlement ...). At the same time, there is no uniform implementation guideline for all ODA-funded projects. Therefore, in the process of implementation, investors often have to ask for guidance from the Government, line ministries, departments and agencies for each specific case. In particular, this causes problems and slows down the progress of the project.
1.3.1.2. Inconsistency in the plan and process of project formulation and approval
Many projects, after being approved, still have to adjust and supplement many components during the implementation process. This entails very troublesome licensing procedures that slow down the progress.
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The process of decision-making is cumbersome, complicated, going through many steps, requiring approval at many levels, including minor changes in the contract. Regulations, guidelines of donors and guidelines of some ministries and sectors are still inconsistent and unclear, lack of coordination and exchange of information internally and between government agencies as well as among ODA sponsor agencies.
1.3.1.3. Shortcomings in bidding work
The weakness of Vietnam's bidding is currently the limitation in legal framework and staff capacity. Due to inadequate preparation, the quality of some pre-bidding operations is also unsatisfactory (such as procurement plans, bidding documents, bid evaluation criteria), making bidding pointless, causing bad consequences.
In addition, other violations still occur frequently and quite commonly such as: bidding, sale by tender, fake bidding (making fake bidding documents), discriminating between state-owned contractors with contractors who are private enterprises, biased in considering and evaluating bids, not closely monitoring and handling seriously not with contractors in the process of implementing contracts for personal motivation. This situation has caused losses and waste of 30-35% of total investment.
Moreover, there is still a situation where the competent person
"bid evaluation" is also the immediate superior of the contractors and have the right to issue administrative orders to select contractors or to settle complaints and denunciations and handle violations in bidding.
This situation does not ensure the openness and transparency in bidding, making low-efficiency ODA projects.
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1.3.1.4. Project monitoring and management are hardly strict
The monitoring of the project implementation process and the quality control of the project are mainly monitored through the report of the investor or project management board, very little direct observation. Although there are regulations on quality standards for construction works, monitoring and supervision to ensure the right quality during and after the implementation of the project has not been strictly implemented.
ODA project management is usually only set during project construction and capital disbursement, not yet formed a apparatus and a force of qualified staff to manage after the project.
1.3.2. Corruption in economic infrastructure projects using ODA capital
The fact that many of the economic infrastructure projects using ODA are of low quality and poor efficiency can be explained by some reasons. However, the actual survey results show that most of the projects remain in low quality in recent years is mainly because of corruption and waste of ODA taking place seriously in this area.
Corruption has caused a huge loss of investment projects on economic infrastructure development in Vietnam over the years, but its consequences have been the quality of projects and projects using ODA capital was not guaranteed. Moreover, this could lead to overspending and increasing capital compared to estimates which in turn cause damage to the State budget and affect the social benefits as well as the image of Vietnam to the donors.
This situation is really a risk for the country because the responsibility to repay ODA is quite heavy for a country like ours.
Therefore, we must consider prevention of ODA capital losses and 23
frauds as a leading mission in ODA-funded projects, to reduce the debt repayment burden for future generations.
V. Solution for Viet Nam about ODA problems
ODA has had a positive effect on socio-economic development in cities and the regions. It has helped to attract further foreign and domestic investment and ease the wealth gap between cities and rural areas. It has also helped support poverty reduction and improved the living standards of the poor.
However, ODA is used ineffectively in a number aspects. The measures or policies to address the issues that using ODA is facing is in need to improve the effectiveness of ODA’s attraction and the use of ODA in Vietnam.