Demand for ODA in the socio-economic development plan 2011-2015

News - In order to achieve the objectives and tasks set out in the Socio-Economic Development Plan 2011-2015, it is estimated that the demand for investment capital is approximately VND 5,745 – 6,140 billion, equivalent to US$250-266 billion, of which domestic capital accounts for 70-80% and foreign capital accounted for 20-25%.

The commitment for ODA and preferential loans from the donors during period 2011-2015 is expected to amount to US$32-34 billion, with disbursed capital accounting for approximately US$14-16 billion (equivalent to about 6% of the total investment), of which 50% is from projects and programs signed between 2006-2010.

As such, the actual demand the country’s economy requires is US$ 14-16 billion of ODA and preferential loans; an average US$ 2.8-3.2 billion/year. The target is to attract approximately US$ 32-34 billion (of which ODA accounts for US$18-20 billion and preferential loans US$8-10 billion); an average of about US$ 6.4-6.8 billion/year and close to the average for the period from 2006-2010 (US$6.35 billion/year).

This committed capital is crucial to ensure the continued preparation and signing of projects and programs and also to provide an additional capital reserve for the period from 2015 onwards.

Based on consultations with the donors, together with experiences and lessons learnt on ODA absorbency and utilization from 1993-2010, the targets set out for the period 2011-2015 are realistic. The Government of Vietnam endeavours to closely cooperate with the donors to achieve the set targets.