WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Construction
Vietnam to raise capital expenditure to U$22.7 billion in 2022
Hai Yen 14:04, 2021/09/09
The Government would focus on accelerating the progress of national projects, especially expressways, seaports, digital infrastructure, as well as those in fields of innovative startups in 2022.

The Vietnamese Government is set to raise its spending on public investment projects by 8.3% year-on-year to VND516.7 trillion (US$22.7 billion), including VND35 trillion ($1.53 billion) from foreign sources.

 The construction of Vinh Tuy Bridge Phase 2 in Hanoi. Photo: Thanh Hai

The figures were revealed in a proposal from the Ministry of Planning and Investment (MPI) on solutions to speed up public investment in 2021 and the plan for next year. The amount would cover the preparation and counterpart funds for projects financed by ODA and concessional loans from foreign donors.

“For 2022, the focus would be to enhance efficiency in the spending of public funds and accelerate the progress of national projects, especially expressway, seaports, digital infrastructure, as well as those in fields of innovative startups,” noted the MPI.

According to the MPI, the Government is expected to push for the construction of current coastal roads that has not been finished in the 2016-2020 period, while starting new projects of significance to economic recovery amid severe Covid-19 impacts.

Given the disbursement of public funds in the first eight months of 2021 of around VND245 trillion ($10.76 billion), or 51.1% of the year’s target, the MPI called for urgent measures to speed up public investment, including greater responsibilities on local provinces/cities and ministries on their commitments to realize their respective disbursement goals.

The MPI suggested state budget allocated in 2021 for ministries or localities with a disbursement rate below 60% as of September 30 be transferred to those with projects of high priorities or in need of funds.

The ministry also noted the necessity to push for administrative reform, apply technologies in the public investment process, and intensify post-review after project completion.

Prime Minister Pham Minh Chinh on July 19 signed off a decision to set up a task force specialized in addressing difficulties in investment projects that are facing delays, including those financed by foreign sources, as the Government considers public investment as a key task to ensure economic recovery.

This year, the Government targets to disburse 95-100% of the VND461.3 trillion ($20.2 billion) of public investment funds allocated for 2021, for which the rate should be at least 60% by the end of the third quarter, or VND276.7 trillion ($12.12 billion).

The disbursement of public funds in Hanoi stood at VND27.5 trillion ($1.2 billion) in the first eight months, representing an increase of 3.4% year-on-year and equivalent to 54% of the year’s estimate.

The city identifies public investment as a key measure to boost economic recovery during the pandemic, especially to fulfill the economic growth target for 2021 of 7.5%.

By the end of the third quarter, Hanoi expects to disburse 60% of the targeted amount and 100% for the whole year.

TAG: Vietnam capital expenditure Covid-19 pandemic startups digital infrastructure expressway
Other news
18:44, 2024/07/13
New Housing Law to lift legal barriers to renovating old apartments in Hanoi
The 2023 Housing Law introduces several important changes to address these issues.
13:50, 2024/07/11
Long-term solutions needed for organizing Hanoi’s rural architectural spaces
Traditional rural architectural treasures like stilt dwellings and communal houses are being commercialized and relocated to urban areas, undermining their original cultural and architectural integrity.
14:19, 2024/07/09
Amended Capital Law to help Hanoi realize Red River zoning plan
It is critical to put available riverbank land to good use in order to enhance landscape, cultural, economic, and tourism values while ensuring flood and disaster prevention.
20:06, 2024/06/27
Vietnam’s strategic infrastructure development projects attract Chinese investors
China actively prioritizes infrastructure development and promotes global transportation cooperation, considering Vietnam as a crucial partner.
15:07, 2024/06/27
PM calls for Vietnam-China cooperation on major projects
Both sides are expected to accelerate the connectivity of transportation infrastructure, particularly in railways, roads, and border crossings, under the frameworks of "Two Corridors, One Belt" and "Belt and Road Initiative."
11:31, 2024/06/26
Vietnam seeks China’s expertise for major railway projects
Vietnam expects to cooperate with China in personnel training, management, control, and design of railway projects.