Hanoi: Vietnam plans to borrow $5.5 billion from abroad by 2026 to expedite national infrastructure projects and address delays in development budget disbursements.

According to Thai News Agency, the Vietnamese government aims to channel these funds into large-scale infrastructure initiatives, with a focus on resolving current bottlenecks in project execution.

Last month marked the start of construction on 234 infrastructure projects valued at over 3.4 billion dong, approximately 4.31 trillion baht. Of this, 18 percent is sourced from the state budget, while the remainder will be financed by the private sector and other investors. The government anticipates utilizing a mix of official development assistance (ODA), concessional loans, and other external funding for the loans in 2026.

Mr. Tran Quoc Phuong, Deputy Minister of Finance of Vietnam, informed the National Supervisory Committee that Vietnam secured ODA and concessional loans for 10 new projects in 2025, totaling $624 million, or around 20 billion baht. However, only 35.27 percent of these funds have been disbursed, highlighting significant implementation delays. The challenges cited include land expropriation, relocation of residents, and complex approval processes for construction in forested areas.

Additional hurdles such as intricate bidding procedures, taxation issues, and prolonged loan negotiations have further complicated project execution. Land pricing and modifications to loan agreements have also contributed to the delays. The Vietnamese government views public investment as crucial for economic growth, targeting a GDP increase of over 10% by 2026.

The revised ODA strategy for 2026-2030 aims to attract up to $38 billion, or approximately 1.26 trillion baht, focusing on large-scale infrastructure projects. Vietnam's recent amendments to its Public Debt Management Law are intended to simplify procedures and empower ODA negotiators, addressing inefficiencies and bureaucratic challenges that have hindered past projects.