Public debts rise, Ministry warns of ODA trapVietNamNet Bridge - The interest rates offered by China are twice as much as other lenders, while the lending conditions are less preferential. The ministry pointed out that Chinese preferential loans, just like export credits, are conditional loans (Chinese corporations are the contractors for projects) with conditions less favorable than loans from other donors. Chinese loans have an interest rate of 3 percent per annum on average, higher than the 0.4-1.2 percent offered by Japan, 0-2 percent by South Korea and 1.75 percent by India. Chinese preferential loans are provided via China Eximbank. Regarding the investment efficiency of projects using Chinese loans, contractors and equipment, the report says most projects proceed slowly, quality is low, and real investment capital is always higher than the estimates.
