Almost 37 localities report ODA disbursement rate of 0%

VCN - This is information released at an online meeting with localities on the disbursement of public investment from foreign loans in the first five months of 2021 held by the Ministry of Finance on June 14.
Online meeting with localities on the disbursement of public investment from foreign loans in the first five months of 2021. Photo: PV
Online meeting with localities on the disbursement of public investment from foreign loans in the first five months of 2021. Photo: PV

Only 15 of 63 localities have a disbursement rate of over 3%

In the first five months of 2021, the rate of disbursement of foreign capital only reached 2% of the estimate assigned by the Prime Minister. Many provinces and cities have not yet conducted disbursement, said Deputy Minister of Finance Tran Xuan Ha at the meeting.

The Deputy Ministerrequested to clarify causes and introduced solutions to boost disbursement in the future.

From this meeting anda meeting with ministries and sectors last week, the Ministry of Finance will review and report to the Government and the Prime Minister in an upcoming online meeting.

Reporting on the status of capital plan assignment and TABMIS entry, Director of the Department of Debt Management and External Finance (Ministry of Finance) Truong Hung Long said the total assigned public investment from ODA and concessional loans in early 2021 to localities was VND63,709 billion. As of May 31, 2021, the capital for 2021 imported into TABMIS was VND48,124.18 billion (equivalent to 75.54% of the capital plan assigned at the beginning of the year).

As of May 31, 2021, the disbursed capital was VND1,100.66 billion, or 1.73% of the estimate, of which the targeted additional capital by the central budget was VND616 billion (equivalent to 1.77% of the capital plan assigned at the beginning of the year) and disbursed capital from re-lending loans to localities was VND484.4 billion (equivalent to 1.68% of the capital plan assigned at the beginning of the year).

Only 15 of 63 localities have a disbursement rate of over 3%, but up to 37of 63 localities reporta disbursement rate of 0%.

To disburse the above capital, the Ministry of Finance has received 650 applications for capital withdrawal, of which 609 of 650 applications have been signed and the remaining applications have returned for ineligibility of withdrawal.

"If considering the capital plan assigned in 2021, the above disbursement rate is very low, much lower than the disbursement rate in the first five months of 2020," Long said.

Cut procedures for adjustment of investment policy

At the meeting, localities like Hanoi, Ho Chi Minh City, Ha Giang, Quang Ninh, Quang Tri, Thai Nguyen, Ha Tinh, Quang Nam and Can Thoreported their disbursement status and reflected difficulties and problems and proposed solutions to speed up disbursement of this capital.

Speaking about the difficulties for delay in disbursement of Hanoi, a representative of the Hanoi People's Committee said that objectively, due to the Covid-19 pandemic, the importation of equipment for projects such as locomotives, wagons of package 6 of the urban railway project No. 3, or bidding package 1 of Yen Xa wastewater plant project from Europe and Japan were behind schedule, affecting the disbursement progress in 2021.

“For ODA projects in Hanoi, the major projects like urban railway projects are facing difficulties in implementation such as site clearance;the differences between Vietnam’s prevailing provisions and international practices; regulations of the sponsor in carrying out contracts with international contractors, leading to disputes. It is recommended that the Ministries of Planning and Investment, Finance, Transport and Construction pay attention and work together so that Hanoi could disburse ODA in 2021,"said Mr. Ha Minh Hai, Vice Chairman of Hanoi People's Committee.

The Ministry of Finance also proposed solutions to boost the implementation of projects and speed up ODA disbursement. Regarding policies and regulations, the Ministry of Finance is urgently finalizing the third draftof the Decree amending and supplementing Decree No. 97/2018/ND-CP on on-lending to submit to the Government for promulgation, in which there are regulations on removing obstacles in the value of collateral for on-lending to public service delivery units and reducing the on-lending rate of some localities which are facing difficulties in local budget balance.

The Ministry of Finance commits to complete spending control within three working days and handle applications for capital withdrawal (direct withdrawal form) within one working day from the date of receiving complete and valid documents.

The Ministry of Finance also proposed the Ministry of Planning and Investment to have a mechanism to simplify or shorten procedures for adjustment of investment policies for cases subject to extension of project implementation and to have a mechanism for capital plan allocation in accordance with the characteristics of capital disbursement from ODA and concessional loans.

The Ministry of Finance requested localities to review the estimate in line with the progress of projects; prioritize disbursement of remaining capital in accordance with the financial mechanism of the projects which are being deployed in the their areas; toimprove on the basis of strengthening the organization and capacity of the project management boards; to closely coordinate with the Ministry of Planning and Investment, the Ministry of Finance and relevant agencies to accelerate the adjustment of investment policies and loan agreements, so as not to let the adjustment affect the progress of implementation and disbursement of projects.

Priority is given to projects that will end in 2021

Concluding the meeting, the Deputy Minister asked localities to review the disbursement data, clearly separate the capital disbursement data from 2020 to 2021 and the disbursement data under the approved 2021 estimate, thereby reporting exact figures.

The Deputy Minister also noted and agreed on the causes for the delay in disbursement of ODA, such as objective causes including the Covid-19 pandemic, foreign experts could not enter Vietnam; importation of materials and equipment in pandemic-affected countries; project equipment changes at the request of the sponsor; loan contract in a prolonged sequence.

The subjective causes are the lack of payment volume, slow processing of capital withdrawal applications; delay in bidding; problems in contract performance; delay in work performance and confirmation of the completed volume; and delay in summarizing applications for capital withdrawal.

From now until the end of the year, the Deputy Minister suggested that relevant authorities, localities and departments give drastic instructions for the project management boards to speed up the progress andwork together to remove obstacles and accelerate disbursement.

Priority should be given to projects that are likely to be disbursed in 2021 and those that will end in 2021.

“Localities need to actively adjust the allocation for projects within their localities. If there is a need to increase or decrease ODA capital in the year, localities should carefully evaluate and soon report to the Ministry of Planning and Investment to report to the Prime Minister for adjustment in the last six months of the year,"the Deputy Minister said.

Regarding mechanisms and policies, the Ministry of Finance is urgently finalizing the draft Decree amending and supplementing Decree No. 97/2018/ND-CP on on-lending to submit to the Government for promulgation and the Ministry of Planning and Investment will preside over the revision of Decree 56/ND-CP.

By Hoai Anh/ Huyen Trang

Related News

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
The Ministry of Finance urges the implementation of anti-smuggling tasks

The Ministry of Finance urges the implementation of anti-smuggling tasks

VCN - Steering Committee 389 of the Ministry of Finance has just requested the General Department of Vietnam Customs, General Department of Taxation, and units under the Ministry of Finance (Office, Legal Department, Inspection) to seriously and effectively implement the conclusions of Deputy Prime Minister Tran Luu Quang, Head of Steering Committee 138/CP and National Steering Committee 389 (in Notice No. 38/TB-VPCP dated February 2, 2024 of the Government Office).
Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

VCN - That was the direction of Deputy Minister of Finance Nguyen Duc Chi at a working session with leaders of the Provincial People's Committee and the Lang Son Departments of Finance, Tax, and Customs on March 19.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.

Latest News

Efficiency from inspection and supervision - a key factor for a transparent stock market

Efficiency from inspection and supervision - a key factor for a transparent stock market

VCN - Since the 2019 Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.
SBV approves designation of 14 important banks in 2024

SBV approves designation of 14 important banks in 2024

The State Bank of Vietnam (SBV) has issued Decision No. 538/QD-NHNN approving the group of credit institutions and foreign bank branches which play an important role in the country's banking system in 2024.
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.

More News

Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Revenue from casino contributes about VND9,000 billion to the State budget

Revenue from casino contributes about VND9,000 billion to the State budget

VCN - The management of lottery and casino business activities is one of contents asked by National Assembly delegates to Minister of Finance at the question and answer session took place on the morning of March 18, within the framework of the 31st session of the National Assembly Standing Committee.
Read More

Your care

Latest Most read
Efficiency from inspection and supervision - a key factor for a transparent stock market

Efficiency from inspection and supervision - a key factor for a transparent stock market

VCN - Since the 2019 Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.
SBV approves designation of 14 important banks in 2024

SBV approves designation of 14 important banks in 2024

The State Bank of Vietnam (SBV) has issued Decision No. 538/QD-NHNN approving the group of credit institutions and foreign bank branches which play an important role in the country's banking system in 2024.
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Mobile Version