Attracting and Utilizing ODA in Vietnam in New Context

Abstract

In 2009, Vietnam's GDP per capital reached $1,297 and since then Vietnam has been included in the list of middle-income countries. Thereafter, the criteria set by the donors are increasingly demanding; ODA is on the downward trend. ODA which is a form of foreign portfolio investment (FPI) with the classic view and perception as official development assistance is being shifted to a new view and perception as commercial credit. Accordingly, ODA has been transformed into official development cooperation. In coming years, in order to overcome the decline in kapital, in addition to the increase in the accumulation of domestic investment, it is necessary for Vietnam to have effective measures, mechanisms and policies to attract, manage and utilize these capital sources so as to effectively avoid problems of corruption, loss, inefficient investment which result in wastage, discredit, and doubts about Vietnam's investment environment for ODA supplying partners. The article analyzes the situation, identifies limitations, inadequacies and causes and proposes solutions to enhance the attraction of ODA to Vietnam and utilization of ODA in the coming years.