Vietnam should reduce ODA use – senior official

Source: Pano feed

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Vietnam needs to reduce its use of official development assistance (ODA), restricting it to urgent and major projects, and take steps to minimise use of such foreign loans as a whole, a senior official has said.


Prof. Nguyen Minh Thuyet, former vice chairman of the National Assembly for Culture, Education, Teenagers and Children


Nguyen Minh Thuyet, former vice chairman of the National Assembly for Culture, Education, Teenagers and Children, said several reported corruption cases related to ODA-funded projects — including the elevated railway project, Noi Bai-Lao Cai expressway and the Dong-Tay Avenue project — were a matter of concern.


“Most of the corruption cases are related to the transport industry and this means we have yet to draw lessons to tighten control over ODA-funded projects,” Thuyet said. “It’s obvious that misconduct happened as a result of lax management in Vietnam.”


Thuyet said relevant agencies should collaborated with the Ministry of Transport and ODA management agencies to work out the best solution to prevent future problems.


“In order to efficiently use ODA, it’s necessary to create strict regulations on borrowing ODA and ODA use supervision,” he said.


ODA providers often set up policies that allow them to appoint companies in their home countries to bid for construction projects. This indirectly helps generate jobs and increase incomes for people in their countries. ODA borrowing countries risk becoming targets for profit takers.


Thuyet said relevant ministries and agencies should note the case where authorities in central Danang City refused to get ODA for a project to upgrade a seaport, preferring to raise cheaper local capital.


“Many countries have stopped borrowing ODA when they reach above average incomes,” he said.


Thuyet said Vietnam’s National Assembly should tighten supervision of ODA borrowing and usage while the government works out an efficient ODA management mechanism.




Đăng ký: VietNam News