The classical and neo-classical theories of ODA provides to cover 3 gaps:
a) Savings - Investment gap
b) Foreign exchange gap
c) Technological gap
The role of Government coordination in ODA is allocating ODA for priority projects to create favorable conditions for socioeconomic development, directly tackling the poverty source, guarantee the results of economic growth will be equally distributed.
Successful strategy of ODA donors support the sectoral and regional development plan by financing priority projects, applying program based approach by combining both developmental studies and financing a number of priority projects. Starting the harmonization in terms of feasibility study, procurement, reporting system, coordination among donors. Lastly the application of new aid modality, which is based on budget support and program-based approach.
Lastly, I want to emphasize that Japan's ODA in Vietnam focuses on construction of large-scale infrastructure and human resource development with a view of promoting economic growth and poverty reduction. This has been realized in the creation of the Northern Growth Triangle, the Central Growth Triangle and the Southern Growth Triangle.
This is proven with results.
** Northern Growth Triangle = Hanoi - Hai Phong - Quang Ninh
**Central Growth Triangle = Da Nang Areas
** Southern Growth Triangle = Ho Chi Minh City- Vung Tau Areas