The Vietnamese government would allocate VND2,750 trillion (US$119.3 billion) for public investment during the 2021-25 period, in which VND1,380 trillion (US$59.85 billion) are from the central government’s budget, and the rest from provincial budgets.

Prime Minister Nguyen Xuan Phuc at the meeting. Photo: Quang Hieu

Prime Minister Nguyen Xuan Phuc revealed the figure at a government meeting discussing the allocation of mid-term public investment fund for the 2021-25 period on March 11.

“Mid-term public investment plan for the 2021-25 period plays a key role in ensuring the country’s comprehensive development in terms of economy, society, defense and security,” Phuc said.

Given the limited financial resources at disposal, the PM urged ministries, provinces/cities to continue mobilize additional investment capital for infrastructure development via the official development assistance (ODA), public-private partnership, and provincial budget.

“The  state fund will be prioritized for financing major infrastructure projects that serve as a boost for socio-economic development and lay the foundation for the economic growth in the next five-year period, including coastal roads, ring roads surrounding major economic and urban zones, regional expressway, digital infrastructure, science and technology,” Phuc added.

“In addition to economic infrastructure, priority should also be given to socio-cultural projects, including the construction of large-scale hospital,” Phuc noted, saying there should be a balance in investment activities between different regions.

The PM requested the Ministry of Planning and Investment to finalize the plan and submit to the government for approval before March 20, while ministries, provinces/cities should review the list of projects set to be included in the mid-term investment plan.

Under Vietnam’s development strategy for the next 10 years, state budget would be used to help attract investment capital from other economic components for socio-economic development.

The government would not finance projects which could be invested with private resources.