Vietnam Forfeits $2.5 Billion In Foreign Aid

Vietnam forfeited at least $2.5 billion in foreign aid over the last three years and may lose another $1 billion due to administrative paralysis, the UN, the World Bank, and Western donors stated in a letter to the Vietnamese government, Francesco Guarascio and Khanh Vu reported for Reuters.

There is growing frustration among foreign investors over regulatory hurdles and lengthy approval procedures causing prolonged deadlock amid Vietnam's escalating anti-corruption campaign and political turbulence.

The document, dated March 6, highlighted frustration among foreign investors over regulatory hurdles and lengthy approval procedures causing prolonged deadlock amid Vietnam's escalating anti-corruption campaign and political turbulence.

Vietnam also failed to invest about $19 billion from 2021 to 2023, one-quarter less than planned, according to the finance ministry.

The letter sent to Prime Minister Pham Minh Chinh indicated that approximately $1 billion in development funding is awaiting approval, with an additional $2.5 billion returned due to funding expirations.

This potential loss amounts to nearly 1% of the country's gross domestic product (GDP).

The expired funding could delay critical infrastructure projects, with donors warning that even more funds may have been lost due to protracted approval processes, deterring additional investments.