The disbursed amount for public investment in the first seven months of this year was estimated at VND170 trillion (US$7.4 billion), slightly increasing from the 40.67% rate recorded in the same period of last year, according to the Ministry of Finance (MoF).
|Vinh Tuy 2 Bridge is under construction. Photo: Bao Khanh|
According to the MoF, the main reasons for the slow disbursement progress are the delay in allocation of state funds, difficulties in site clearance and resettlement for affected households; and complicated procedures in the approval process for ODA-financed projects.
“The current Covid-19 outbreak has also severely affected projects’ implementation process and subsequent state fund disbursement,” it noted, referring to the current social distancing measures being imposed in 19 southern municipalities to fight the pandemic.
To ensure greater efficiency in public investment, the Government has issued Resolution No.63 on measures to boost growth and speed up public investment by late 2021 and early 2022.
Under this resolution, the government urged local authorities to enhance discipline in public investment with greater responsibilities for the leadership of each ministry and agency.
The government also requested the setup of task forces specialized in speeding up the disbursement of public funds in provinces/cities to address bottlenecks in the disbursement process and any violations in this regard.
For the seven-month period, Hanoi disbursed VND24 trillion ($1 billion) in public investment, up 8.4% year-on-year and equivalent to 47% of the year’s target.
The city identifies public investment as a key measure to boost growth amid the severe Covid-19 situation, with the aim of disbursing 60% of the targeted amount in the third quarter and 100% for the whole year.
“To achieve a GRDP growth of 7.5% in 2021, public investment is a key solution,” stressed Vice Chairman of the Hanoi People’s Committee Le Hong Son.
With the current low disbursement progress, Son requested contractors to speed up implementation progress, adding the city has set up six working groups specialized in speeding up public investment.