Tran Anh Tuan, Vu Pham Quynh Huong, Nguyen Thi Phi Yen
CHALLENGES AND OPPORTUNITIES FOR THE DEVELOPMENT OF INFRASTRUCTURE AFTER ‘ODA GRADUATION’ - MOVING TOWARDS SUSTAINABLE DEVELOPMENT: CASE STUDY OF VIETNAM
Abstract:
The research on ODA will be focused on its relation to Goal 17, the Partnership, considered a major issue by the researchers, especially in the case of Vietnam as a developing economy. ODA was mainly used for investing in economic infrastructure when Vietnam witnessed a downfall in receiving financial aid due to its significant economic growth. ODA helped Vietnam transform from one of the world’s poorest nations into a lower middle-income country and soon, this is going to lead to the ‘ODA Graduation’. However, the process has just begun. The country is still in a process of industrialization and modernization and its socio-economic situation has not been stable or solid. By all means, ODA is not only a financial resource, it also helps the country to accomplish Sustainable Development Goals (SDGs) of the UN. ‘ODA Graduation’ means that the economy of Vietnam has faced certain challenges such as increasing pressure of outbound debts; raising impact on social development or imbalance between high capital recovery investments and public-services investments. However, ‘ODA Graduation’ has brought certain opportunities such as increasing Vietnam’s independence in capital mobilization, preventing the removal of tariffs barrier, reducing losses and waste of funds. This research gives recommendations for improving Vietnam’s economic situation and can help overcome the difficulties in the period of ‘ODA Graduation’.
