Capital allocation for 2016-2020: Need to solve low-efficieny investment

VCN-  On 20th April 2017, the Standing Committee of the National Assembly continued to comment on the plan on distribution of public investment for 2016-2020.
capital allocation for 2016 2020 need to solve low efficieny investment Vietnam enters top 5 biggest foreign investors in Cambodia
capital allocation for 2016 2020 need to solve low efficieny investment Equitization must ensure the sale of state capital
capital allocation for 2016 2020 need to solve low efficieny investment The State Treasury: Disbursement of capital construction investment reaches a high rate
capital allocation for 2016 2020 need to solve low efficieny investment
The Vice Chairman of the National Assembly, Mr. Phung Quoc Hien chaired the discussion.

Authorized by the Government to present the report, the Minister of Planning and Investment, Mr. Nguyen Chi Dung said: Till now, the Government has distributed all the total capital investment plan for medium-term approved by the National Assembly. Accordingly, there are no Ministries, departments or localities to be allocated capital, not in line with the Law. In particular, there has been a large amount of priority capital to be allocated for debt repayment, repayment of advance capital, allocation of counterpart fund for ODA, PPP, etc.

Regarding the detailed plan and allocation of the first phase, the Minister said that the Government implemented the first phase of medium-term public investment plan with the total capital of more than 1,134.6 trillion vnd, equivalent to 56.7% of the total medium-term capital approved by the National Assembly and 65.2% of the total capital allocation.

In the first phase of allocation, the Government allocated 163.34 billion vnd to support 458 communes in 12 provinces in the Mekong River delta in the national target program on building new rural areas; allocated 7,300 billion vnd for localities to implement the objectives of housing support for people with merit; 130 billion vnd of Government bonds for the resettlement project such as resettlement of Son La hydropower.

Regarding the medium-term public investment plan of more than 605 trillion vnd in the second phase of allocation, the Government has requested Ministries, sectors, and localities to deal with outstanding issues such as the climate change adaptation and green growth targeting program; Coastal road investment; solutions for the Social Policy Bank and Vietnam Development Bank (VDB).

This time, the Government wants to allocate 20.865 trillion vnd in the medium term for the Social Policy Bank because the bank has a good performance with bad debts accounting for only 0.75% and overdue loans of 35% and debt freeze around 0.4%. At the same time, the Social Policy Bank has actively contributed to the implementation of the social security and poverty reduction policy in the past 15 years and is currently assigned to carry out some new tasks.

For the Vietnam Development Bank, the Government has proposed to allocate 12,670 billion vnd to the bank ( the interest and management fee until 31st December 2016). The remaining capital is estimated at 15,015 billion vnd allocated to the VDB. The Government has proposed an addition of 2,000 billion vnd to the Social Policy Bank to support the development of social housing, added 4,000 billion vnd to the target program in the East Sea and islands and the remaining amount which is unallocated is 9,015 billion vnd.

Examining the Government's plan, the Finance and Budget Committee found that one of the requirements for allocating funds for 2016-2020 is to solve low-efficiency investment and low-capital allocation, which leads the incomplete projects.

However, the list of projects which were submitted by the Government had a lot of projects with low capital compared to the total investment, so it was difficult to be able to complete the project on schedule. Therefore, the Finance and Budget Committee has recommended that, for low-cost projects, the Government should require ministries, sectors, and localities to commit to ensuring the feasibility of mobilizing legal capital. Others to complete the project on schedule, do not allow these units to postpone to avoid continuing unfinished projects, causing the burden of balancing, allocation of capital investment in the next stage. In the case where the projects fail to meet the requirements and conditions on capital to ensure the completion, the proposal is not to allocate capital immediately.

Tthe Finance and Budget Committee also agreed to allocate the chartered capital to the Vietnam Development Bank after the Government reported the model assessment, outstanding debts, performance, development orientation, plan for charter capital arrangement, management fees and interest rate difference of the bank.

capital allocation for 2016 2020 need to solve low efficieny investment BIDV asked to help expand investment abroad

Prime Minister Nguyen Xuan Phuc has asked the Bank for Investment and Development of Vietnam BIDV to ...

Regarding this issue, the members of the Standing Committee of the National Assembly agreed on the Government's thorough review of the criteria for putting the project in the medium-term public investment portfolio fairly and practically instead of the conclusion of the senior leaders when they work in localities".

By Hong Van/ Hoang Anh

Related News

Vietnam, Korea Customs sign AEO MRA

Vietnam, Korea Customs sign AEO MRA

VCN- The Director General of the General Department of Vietnam Customs (GDVC), Mr Nguyen Van Tho, and the Commissioner of Korea Customs Service (KCS), Mr Ko Kwang Hyo, signed the Authorized Economic Operator Mutual Recognition Agreement (AEO MRA) on the afternoon of December 24, at the GDVC’s headquarters.
Issuing government bonds has met the budget capital at reasonable costs

Issuing government bonds has met the budget capital at reasonable costs

VCN - According to the State Treasury's report, capital mobilization through the issuance of government bonds has ensured mobilization to meet the capital needs of the state budget at reasonable costs.
Untying the knot for green finance

Untying the knot for green finance

VCN - Green finance is a crucial resource for greening businesses. Completing the policy framework for green finance is urgently needed to unlock this capital flow.
Prioritizing semiconductor workforce training

Prioritizing semiconductor workforce training

VCN - Vietnam is well-positioned to participate deeply in the global semiconductor industry. Experts believe that developing a skilled workforce in microchips and semiconductors should be a long-term priority to effectively capitalize on this opportunity.

Latest News

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Positive economy growth forecast in 2025, but caution remains

Positive economy growth forecast in 2025, but caution remains

Growth is expected to moderate from 7.5 per cent year-on-year in H1 to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment.
Labour market to see changes in key industries

Labour market to see changes in key industries

It is anticipated that the technology, renewable energy and logistics sectors would continue to expand rapidly in 2025.
Prime Minister warns of possible global trade war, pushes for preparation

Prime Minister warns of possible global trade war, pushes for preparation

The Government leader warns of a possibility of a trade war that may disrupt the global supply chain.

More News

Positive economic indicators recorded in early 2025: Gov

Positive economic indicators recorded in early 2025: Gov't spokesperson

Trade remained smooth, with total import-export turnover estimated at $63.15 billion, down 10.5 per cent from the previous month and 3.5 per cent year-on-year.
General Secretary urges immediate return to work after Tết

General Secretary urges immediate return to work after Tết

Party General Secretary Tô Lâm praised efforts to ensure a well-organised holiday, but stressed the need for authorities and businesses to return to work promptly. He warned against extended celebrations and called for full focus on meeting February and first-quarter deadlines.
Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

PM Phạm Minh Chính expressed his hope for continued support from the Party Central Committee, its Politburo and Secretariat, current and former leaders, the National Asembly, and the Việt Nam Fatherland Front for the Government to fulfil its tasks, creating momentum for the whole country to make development breakthrough and enter the era of the nation’s rise.
Việt Nam’s manufacturing PMI slips into contraction in January

Việt Nam’s manufacturing PMI slips into contraction in January

Business conditions in the Vietnamese manufacturing sector weakened in the first month of 2025 with drops in both output and new orders.
Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

The past 95 years have formed a glorious and pride-worthy period for the Vietnamese people as they have gradually eliminated poverty and backwardness, steadily moving towards a wealthier and happier future.
Great opportunities for cooperation with Việt Nam in 2025: Malaysian Ambassador

Great opportunities for cooperation with Việt Nam in 2025: Malaysian Ambassador

Malaysian Ambassador to Việt Nam Dato’ Tan Yang Thai says he believes that 2025 will bring even greater opportunities for cooperation between the two countries in his recent interview with the Vietnam News Agency.
Structural reform, innovation to drive Việt Nam

Structural reform, innovation to drive Việt Nam's sustainable development: EuroCham chair

Bruno Jaspaert, chair of EuroCham Vietnam told the Vietnam News Agency in a recent interview that Việt Nam continued to stand out as a highly attractive destination for foreign investors, including those from Europe.
At threshold of a new era: Vietnam accelerates toward breakthroughs

At threshold of a new era: Vietnam accelerates toward breakthroughs

Vietnam is poised to enter a new era of the nation's rise, acceleration and breakthroughs, marked by a major milestone: the 14th National Congress of the Communist Party of Vietnam (CPV).
Vietnamese, Russian leaders exchange congratulations on diplomatic ties anniversary

Vietnamese, Russian leaders exchange congratulations on diplomatic ties anniversary

Building on the strong ties nurtured by generations of leaders and people over the past 75 years, the traditional friendship and Comprehensive Strategic Partnership between Việt Nam and Russia will continue to yield positive results, living up to the two countries’ glorious histories.
Read More

Your care

Latest Most read
Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Positive economy growth forecast in 2025, but caution remains

Positive economy growth forecast in 2025, but caution remains

Growth is expected to moderate from 7.5 per cent year-on-year in H1 to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment.
Labour market to see changes in key industries

Labour market to see changes in key industries

It is anticipated that the technology, renewable energy and logistics sectors would continue to expand rapidly in 2025.
Prime Minister warns of possible global trade war, pushes for preparation

Prime Minister warns of possible global trade war, pushes for preparation

The Government leader warns of a possibility of a trade war that may disrupt the global supply chain.
Positive economic indicators recorded in early 2025: Gov

Positive economic indicators recorded in early 2025: Gov't spokesperson

Trade remained smooth, with total import-export turnover estimated at $63.15 billion, down 10.5 per cent from the previous month and 3.5 per cent year-on-year.
Mobile Version