Exclusive: Vietnam forfeits billions of dollars in foreign aid amid anti-graft freeze, document says

Francesco Guarascio - Reuters - 17/05
Vietnam forfeited at least $2.5 billion in foreign aid over the last three years and may lose another $1 billion because of administrative paralysis, the United Nations, the World Bank and Western donors told the government in a letter seen by Reuters.
  • Vietnam lost $2.5 bln in aid, another $1 bln stuck, letter says
  • It failed to spend nearly $19 bln of its own money since 2021
  • Anti-bribery drive freezes administration, blocks climate funds
HANOI, May 17 (Reuters) - Vietnam forfeited at least $2.5 billion in foreign aid over the last three years and may lose another $1 billion because of administrative paralysis, the United Nations, the World Bank and Western donors told the government in a letter seen by Reuters.
The previously unreported figures from the unpublished document, dated March 6, highlight frustration among foreign investors over regulatory hurdles and lengthy approval procedures that have caused prolonged deadlock as the Communist-ruled country is gripped by an escalating anti-corruption campaign and political turbulence.
"Approximately $1 billion in development funding is awaiting approval, with an additional $2.5 billion returned due to funding expirations," said the letter, sent to Prime Minister Pham Minh Chinh - effectively signalling potential losses worth nearly 1% of the country's gross domestic product.
The expired funding could delay much-needed projects, such as infrastructure upgrades, and donors stressed in the letter that much more may have been lost in additional funds that have been "deterred by the protracted approval processes".
Two senior foreign officials interviewed by Reuters directly linked the administrative hurdles to the "blazing furnace" anti-graft drive, echoing similar comments from other diplomats and officials in rece...
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