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Private enterprises to get ODA
Director of the Business Consulting and Management Centre Nguyen Dinh Tai spoke to Nong thon Ngay nay (Countryside Today) newspaper about making ODA funds accessible to private businesses
What are the chances of the private sector being able to use ODA funds?
I personally think it is completely possible. As it is, people who borrow from the fund clear their debts through paying tax. The Government, meanwhile, takes responsibility for mobilising and signing on with ODA providers.
The fund has long been used by State companies only, but under the market mechanism State enterprises must be equal to private ones, therefore both of them should be able to use ODA funds.
Private enterprises have already been able to use ODA funds but only if they are under the patronage of State-owned enterprises when implementing projects. Should this condition be eliminated to create equality in the use of ODA loans?
In my opinion, it can be eliminated, especially for efficient private enterprises which sometimes are more efficient than some State-owned enterprises. The facts have shown that the funds are poured into State enterprises every year but they do not efficiently use all these funds. So why not lend ODA funds to private enterprises instead of forcing them to ‘hide' behind State enterprises?
What are the measures to streamline and solve the difficulties in managing the use of ODA funds if private enterprises are allowed access?
Enterprises, including private ones, may be invited to bid for ODA funds. By doing so, enterprises with good reputations and ‘clean' finances will be able to access the fund. We should not worry that private enterprises do not have the required standards to manage the actual fund.
Under current policies, it is impossible to borrow ODA loans while also taking out bank loans. How will access to ODA loans be streamlined for private enterprises?
I think there is no difference. Private enterprises will also be required to prove their ability to clear their debts and show they have asset as security for banks. They also have to show good financial planning for their projects before they are allowed to borrow ODA funds. As far as I know, the Government will soon issue a decree about this issue.
Will private enterprises find that securing an ODA loan is just as difficult as getting a loan from a bank?
First and foremost, we must have an open policy to help private enterprises access ODA loans. If we are still hesitant to do so, we should test the changes by allowing only some private enterprises to use the loans before making ODA available to the entire private sector.
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