Synchronous legal framework, more open procedures
On the morning of September 26, 2025, the Ministry of Finance held a workshop to disseminate Decree No. 242/2025/ND-CP dated September 10, 2025 of the Government on the management and use of ODA capital and foreign preferential loans, to remove obstacles and improve the efficiency of using ODA capital and foreign preferential loans.
Speaking at the workshop, Mr. Nguyen Quoc Phuong - Director of the Department of debt Management and External Economy, Ministry of Finance - emphasized: "Decree 242/2025/ND-CP is of special importance because it not only helps to remove bottlenecks in mobilizing ODA capital and preferential loans but also clearly demonstrates the spirit of reform, institutions, and strong policies of the Government, in line with the strategic reform orientation through the four pillars of the Politburo".
He said that the demand for capital for infrastructure, digital transformation, climate change response and social security is increasing. Decree 242/2025/ND-CP was issued to perfect the legal framework, ensure consistency with the Constitution, the Law on Public Investment 2024 and related laws.
The new Decree inherits and amends the provisions of Decree 114/2021/ND-CP and Decree 20/2023/ND-CP, with three key groups of solutions: simplifying administrative procedures, promoting decentralization and perfecting mechanisms to remove difficulties.
Accordingly, many intermediary appraisal and approval stages have been abolished; procedures for adjusting project documents have been shortened; the process of receiving loans, allocating capital plans, using surplus capital, and selecting banks for service has been streamlined. Cases that require adjusting investment policies are significantly reduced, thereby shortening project implementation time.
At the same time, the decree gives additional authority to ministries, branches and localities in deciding on investment policies for many projects previously under the authority of the Prime Minister; decentralizes the management agency to participate in most regional projects; gives the right to decide on the use of surplus capital and adjust the project to state-owned enterprises to borrow ODA capital and preferential loans.
In addition, the decree adds regulations on handling assets and equipment handed over by donors, regulations on decentralization of budget expenditures for science, technology, innovation and digital transformation, as well as allowing capital withdrawal in the electronic environment, in accordance with digital transformation requirements and international practices.
Expectations to improve the efficiency of foreign capital use
According to the Ministry of Finance, the issuance of Decree 242/2025/ND-CP contributes to ensuring consistency in public debt management, public investment and state budget. Simplifying procedures, increasing decentralization and removing mechanisms will help improve the proactiveness and responsibility of ministries, branches and localities; while saving time and costs in project management.
Mr. Nguyen Quoc Phuong affirmed: Decree 242/2025/ND-CP has completed the legal framework, shortened procedures, increased decentralization, and supplemented mechanisms to remove obstacles, in harmony with international practices. This is an important step to improve the efficiency of using ODA capital and preferential loans, contributing to promoting rapid and sustainable development".
The representative of the Ministry of Finance also expressed his gratitude to bilateral and multilateral donors and international organizations for supporting Vietnam in terms of capital, knowledge, technology and management experience. The Ministry of Finance is committed to accompanying ministries, branches, localities, businesses and development partners, promptly removing difficulties, continuing to reform institutions and policies, ensuring a transparent and favorable legal environment in line with international practices, he emphasized.
