Vietnam aims to disburse at least 95% of the public fund allocated for this year, equivalent to more than VND676 trillion (US$28.47 billion), and sees public investment as a key solution to boost growth.

Prime Minister Pham Minh Chinh at the conference. Photos: Nhat Bac/VGP

Vietnam aims to disburse at least 95% of the public fund allocated for this year, equivalent to more than VND676 trillion (US$28.47 billion), and sees the public investment as a key solution to boost growth.

Prime Minister Pham Minh Chinh made such remarks today [February 21] at a national conference on accelerating public investment progress in 2023 and the socio-economic recovery program.

In light of the unpredictable global landscape and Vietnam's status as a developing country with a transforming economy and internal challenges, Chinh recognized that promoting public investment is both a valuable resource and a catalyst for development.

For the current year, the National Assembly approved a budget plan of almost VND712 trillion ($30 billion), representing a significant increase of more than VND130 trillion ($5.5 billion) in 2022 and VND250 trillion ($10.5 billion) in 2021.

Given the huge amount to be disbursed, Chinh has set a target of spending a minimum of 95% of this capital plan, which totals more than VND676 trillion ($28.47 billion).

The Prime Minister emphasized that a large amount of capital and higher disbursement requirements make it imperative to have suitable solutions from the outset; otherwise, disbursement would be slow, leading to a waste of resources and a drain on development strength.

This will resolve infrastructure, education, culture, health, and security issues, create jobs, cement social security, and promote business and production. The goal is to create new opportunities for development and increase economic production capacity while ensuring macroeconomic stability and sustainable development," Chinh stated.

He expected a thorough review of resources and strict compliance with administrative discipline, with individual accountability for the timely completion of tasks while promoting innovation and digital transformation and encouraging public-private partnerships in infrastructure development.

He stated that real-time information and data on the disbursement of public investment and key national transport infrastructure investment projects should be shared between the Ministry of Finance and the Ministry of Planning and Investment to support management, direction, and administration.

Overview of the meeting.

According to a report from the Ministry of Planning and Investment, this year is more favorable than the past two years because most of the major public investment projects have completed procedures and received sufficient capital under the mid-term investment plan for 2021-2025.

However, the situation remains challenging due to the significant workload and a 23% increase (equivalent to VND130 trillion) in budget allocation compared to the 2022 plan and VND250 trillion compared to 2021.

Additionally, unpredictable fluctuations in raw material and fuel prices have a direct impact on construction investment and contractors.

In some provinces/cities, Party committees, authorities, and project leaders lack determination and focus in addressing challenges and problems arising in various projects. The capacity of project management teams, professionals, and contractors remains weak, and there is a poor sense of adherence to laws and discipline in public investment, it noted. The Ministry also noted inadequate interagency coordination, resulting in ineffective and delayed responses.

To expedite the disbursement of public capital, the Ministry of Planning and Investment called for not only addressing issues related to site clearance and project investment procedures but also promoting decentralization.

By January 2023, the disbursement for the socio-economic recovery program is expected to reach VND80.8 trillion ($3.4 billion). This included loans disbursed through the Bank for Social Policies, amounting to VND16 trillion ($675 million), with an additional VND878 billion ($37 million) in interest rate support; tax, fees, and charges reduction amounting to VND52.6 trillion ($2.2 billion); and deferment of tax and land rental fees payment of VND7.4 trillion ($312.23 million).

Chairman of the Hanoi People's Committee Tran Sy Thanh at the conference.   Hanoi calls for greater authority to speed up public investment At the conference, Chairman of the Hanoi People's Committee Tran Sy Thanh said that the implementation of large-scale projects faces many administrative hurdles, including land and environment management, which require close cooperation between different agencies. To speed up decision-making, he suggested the government promote further decentralization and grant more authority to localities. By the end of January, Hanoi had disbursed more than VND45 trillion ($1.9 billion), reaching nearly 88% of the public capital plan allocated for 2022. As for this year's allocation, by the end of February, the city had disbursed more than VND3.6 trillion ($152 million), about 5.5% of the yearly plan.