HỌC VIỆN CHÍNH SÁCH VÀ PHÁT TRIỂN VIỆN ĐÀO TẠO QUỐC TẾ SENIOR THESIS THE IMPACT OF OFFICIAL DEVELOPMENT ASSISTANCE ON VIETNAM’S ECONOMIC GROWTH IN THE PERIOD 1993-2020 Supervisor: Mr Dao Hoang Tuan Student: Le Thi Thu Thuy Student ID: 5083106552 Class: KTĐN CLC 8.2021 Luan van ACKNOWLEDGEMENT A completed study would not be possible without help. As a result, the author gratefully acknowledges their assistance and encouragement during the course of conducting this research as a requirement of completing my Bachelor's degree in International Economics. First and foremost, I'd like to convey my heartfelt gratitude to advisor, Dr. Dao Hoang Tuan.
Throughout the execution of my thesis, he was a constant source of encouragement and advice. His words of encouragement and criticism have really enhanced and improved my work. The thesis would have been difficult to complete without his drive and directions. My heartfelt gratitude goes out to my parents for their never-ending love, care, and encouragement throughout my life.
I'd also like to express my gratitude to my siblings, brothers, and sisters for their constant support and care. Finally, I want to express my gratitude to all of my friends who helped me during my stay at the Academy of Policy and Development. Their kind assistance, concern, and motivation gave me strength and enabled me to overcome all of my difficulties for the rest of my life. Student Le Thi Thu Thuy i Luan van CONTENTS ACKNOWLEDGEMENT.
ii LIST OF TABLES, CHARTS, DIAGRAMS .iv LIST OF FIGURE. Reason for choosing topic. Research goals and tasks .4 THE BODY OF THE STUDY.5 CHAPTER 1: THEORETICAL BASIS OF OFFICIAL DEVELOPMENT ASSISTANCE .1 Overview of ODA capital .1 The definition of ODA capital .2 The origin of ODA .3 The characteristics of ODA capital .4 The classification of ODA capital .2 The role of ODA in economic development .1 ODA is an important source of additional capital for development investment.2 Access to advanced scientific and technological achievements and human resource development (technology spill-over) .3 ODA is playing an important role in improving socio-economic indicators.4 ODA helps contract other sources of international investment.3 International best practice .17 CHAPTER 2: THE SITUATION OF ODA ATTRACTION AND USE AND ITS IMPACTS ON THE VIETNAMESE ECONOMY .1 The overview of Vietnam's economic development and the influence of ODA on that development .23 ii Luan van 2.2 The status of ODA capital mobilization.1 Vietnam's regulations on management of capital attraction and use .2 The process of managing and utilizing ODA.3 The priority areas and donors of funding for Vietnam .4 The current situation of ODA capital mobilization .3 The current status of capital management and use .The situation of capital management and use in the period 1993 -2020. Empirical evidence of impact of ODA on economic growth in Vietnam.
Some basic successes, reasons for limitations in management and use of capital .1 Basic successes in management and use of ODA .2 Reasons for the limitation .52 CHAPTER 3: SOLUTIONS TO IMPROVE THE EFFICIENCY OF CAPITAL USE IN VIETNAM .1 The environment in which ODA is attracted to and used .1 In the world .2 Solutions to improve the efficiency of capital use in Vietnam.1 Improve the legal environment.2 Perfection of the right management method and model; tight project management to prevent loss and waste.3 Carefully prepare, detail the project preparation stages to ensure convenience during the implementation of infrastructure projects.4 Training, fostering and improving management and professional skills for staff working on projects.5 Improve the implementation of programs and projects, promote disbursement.6 Strengthening the monitoring, supervision and evaluation work.65 iii Luan van LIST OF TABLES Table 1. Official foreign support for Korea (Unit: billions of dollars at current prices). The ODA’s effectiveness in Korea's development period. Distribution of Korean grants (1945-1961) .20 Table 4: Situation of public debt and ODA debt of Vietnam in the period 2002-2006 .43 iv Luan van LIST OF FIGURE Figure 1.
The ODA allocation ratio for fields from 2006 to 2010. The percentage of ODA allocated by sector in the period 2011 - 2015. The proportions of ODA loans in ODA capital from 1993 - 2012. The ODA signed and disbursed from 2011 to 2015.
The ODA commitment, signed ODA and ODA disbursement in 1993 -2012. The total ODA and Official Aid in Vietnam from 2000- 2017. The net official development assistance from 1960 to 2014. Top 10 recipients of ODA from DAC countries in the period 2009- 2018 .56 v Luan van INTRODUCTION Globalization now needs each country to be proactive in international integration, in order to promote its available potentials and make the most of external resources, in line with the general trend of the world economy.
International cash flows, particularly ODA, appear to aid developing countries. ODA, in particular, is a critical role in determining developing countries' economic growth. After more than 30 years of rehabilitation, Vietnam has made significant progress in the socioeconomic development process. With the given Vietnam's low degree of economic development and limited ability to amass capital outside of domestic capital, official development assistance (ODA) has laid the groundwork for the country to attract foreign resources.
Donors have given Vietnam with a significant source of financing throughout the last 20 years, assisting with economic reform and international integration. Vietnam currently has over 50 active international and bilateral donors who give ODA and concessional loans to the country's main socioeconomic sectors and fields. For many years, this has been a reliable source of foreign currency, helping to improve the balance of international payments, increase foreign exchange reserves, and stabilize the exchange rate. Unfortunately, there are other fundamental restrictions to attracting and using ODA funds, such as not maximizing capital sources, a delayed payment process that causes business disruption, and so on.
The aforementioned flaws have a substantial impact on the country's economic development. Recognizing the importance of ODA, I undertook the project "The impact of ODA on Vietnam's Economic Growth in the Period 1993-2020" to research and learn more about the current state of management activities and ODA capital use, evaluate the results achieved and limitations of ODA capital, analyze the impacts of this activity on Vietnam's socio-economic development, and make recommendations. 1 Luan van BEGINNINGS 1. Reason for choosing topic International integration is becoming an unavoidable tendency for countries, and Vietnam is no exception: it is gradually becoming more integrated into the economy.
This is also an opportunity for rich countries to provide assistance. Official development assistance makes a substantial contribution to the achievement of the country's socio-economic objectives (ODA). Many accomplishments in the domains of transportation, hunger eradication and poverty reduction, industrialisation and modernization. have all benefited greatly from ODA.
In recent years, the effect of oda capital has shifted substantially in several industries, helping Vietnam's economic growth. ODA has aided in the rehabilitation and building of various infrastructure projects, as well as the expansion of social indicators, job creation, poverty reduction, and improvement, particularly from 1993 to the present. make a difference in people's lives Aside from the achievements, the impact of ODA on Vietnam's economic growth has had numerous limits in the past, such as not optimizing the efficiency of recruiting and utilising capital. As a result of this reality, identifying the weak points in the process of attracting and using capital, as well as suggesting measures for improvement, is critical for any country.
It assists the receiving country in establishing a clear direction and development goals, directing departments and individuals toward the shared goal of the common economy, and preventing waste and abuse of aid resources. Today's global economy moves at a breakneck pace, requiring each country to be proactive and inventive in order to keep up. As a result, I have decided to write my senior thesis on "The Impacts of Official Development Assistance on Vietnam's Economic Growth from 1993 to 2020." It highlights the accomplishments that have been made, as well as the limitations that still exist in the project's implementation, through an analysis and appraisal of the current condition of attracting and deploying ODA funds, from which to have an overview of ODA use over time this wealth, and so provide ways for attracting and utilizing this capital in the future. Research scope The main issue of the thesis is "The impact of ODA on Vietnam's economic growth in the period 1993-2020", in which the topic focuses on researching to answer the following questions: How effective are the activities of attracting and using ODA capital in Vietnam? What is capital optimization strategy planning? Purpose and role of strategic planning.
Model/content of Vietnam's strategic planning activities to attract and use ODA? The successes, limitations and causes of difficulties in the process of strategic planning to optimize aid sources for the country? The most feasible solutions and proposals for planning development strategies to attract and use ODA for the country? 3. Research goals and tasks 3.1 General goal The overall goal of the study is to analyze and propose solutions to positively "The impact of ODA on Vietnam's economic growth".2 Detail goals On the basis of the general goals that have been established for the above research thesis, in more detail, the topic is researched to solve 3 specific goals: 1. Systematize the theoretical basis for the deployment of ODA in Vietnam and internationally. Research and analyze the current situation of attracting and using aid sources in Vietnam in the period 1993-2020 3.
Proposing, perfecting the implementation of the development strategy and optimizing the use of aid resources in Vietnam.1 Research Process The topic identifies and analyzes research questions using the knowledge of the world monetary theory module. Methods of investigation: Secondary data, such as studies on the state of 3 Luan van attracting and utilising ODA in Vietnam, are combined with Vietnamese decrees and economic strategies to provide answers.2 Data collection methods.1 Secondary data collection method. I used secondary data from both inside and outside the Vietnamese market to finish the thesis. The information contained within the Vietnamese economy includes references to the establishment and growth of ODA capital, as well as the current state of soliciting and utilizing aid sources.
Reference books on policies, economic laws, articles on the state of the Vietnamese economy in recent years, and articles about Vietnam's progress are examples of secondary data outside the Vietnamese market. on a number of economic and government websites, build and estimate the trend of activities to attract and employ ODA funds.2 Primary data collection method. The research paper's primary data is acquired through the use of questionnaires. For the research topic, students at the academy collect data on the status of attraction and the use of gifts from Vietnam in recent years.
Observation and data collection methods: Directly follow news items and reports from official forums.3 Data Analysis Methods Since expert interviews are the primary method of data collection, I analyze the collected data primarily using qualitative methods, combining the principles of basic innovative thinking, logical system approach, dialectical materialism, and historical materialism with statistics and analysis for the purpose of studying and placing it in the broader context. Theme structure In addition to the introduction, table of contents, list of tables, figures, acronyms, appendices and conclusion, the thesis consists of 3 main chapters: Chapter 1: Theoretical basis of official development assistance. Chapter 2: The situation of ODA attraction and use and its impacts on the Vietnamese economy. Chapter 3 Solutions to improve the efficiency of capital use in Vietnam.
4 Luan van THE BODY OF THE STUDY CHAPTER 1: THEORETICAL BASIS OF OFFICIAL DEVELOPMENT ASSISTANCE 1.1 Overview of ODA capital 1.1 The definition of ODA capital There have been many diverse perspectives on ODA throughout the international economy's evolution. Previously, ODA was thought to be a form of budget assistance from wealthy countries to developing and impoverished countries. ODA is essentially free with this idea. In today's trend of economic internationalization and globalization, an entirely new perspective on ODA has emerged.