What is ODA loan? Which entities have power to conclude an ODA or external concessional loan agreement in Vietnam?

What is ODA loan?

Pursuant to Clause 5, Article 3 of the Law on Public Debt Management in 2017 stipulating as follows:

”ODA loan” (Official Development Assistance loan) means an external loan with a grant element of at least 35% (in case of conditional loan relating to procurement of goods and services as prescribed by the foreign donor) or at least 25% (in case of unconditional loan).

Which entities have power to conclude an ODA or external concessional loan agreement in Vietnam?

Pursuant to Clause 6, Article 29 of the Law on Public Debt Management in 2017 stipulating power to conclude an ODA or external concessional loan agreement in Vietnam as follows:

The State President, the Government and the Prime Minister has the power to negotiate and conclude an ODA or external concessional loan agreement as follows:

- The Government shall submit a loan agreement in the form of international treaty in the name of the State to the State President for negotiation, conclusion, and ratification;

- The Prime Minister shall negotiate and conclude a loan agreement in the name of the Government.

What are requirements for conclusion of an ODA loan or external concessional loan agreement in Vietnam?

Pursuant to Clause 7, Article 29 of the Law on Public Debt Management in 2017 stipulating as follows:

The conclusion of an ODA loan or external concessional loan agreement is considered qualified when the following conditions are fulfilled:

- all of investment procedures are completed as per the laws; and

- the ODA loan or external concessional loan agreement has been approved by the competent authority.

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