Continuing to leverage public investment as a key pillar

VCN - According to the assessment of many experts, given the challenging economic environment with various obstacles that have been slowing down economic growth, a vigorous push for the implementation of public investment capital will play a crucial role in boosting economic growth in the remaining months of 2023.
Expectations on the driving force of public investment Expectations on the driving force of public investment
Let public investment capital flow quickly into the economy Let public investment capital flow quickly into the economy
Disbursement of public investment – a turbo booster for economic growth Disbursement of public investment – a turbo booster for economic growth
Continuing to leverage public investment as a key pillar
Effective public investment contributes to promoting economic recovery and development. Photo: H.D

Achieving over 51% of the plan for the first time

Regarding the growth drivers in the first nine months of the year, Nguyen Thi Huong, the General Director of the General Statistics Office, noted that in the context of the ongoing domestic economic difficulties, which are influenced by both internal and external factors, the domestic production and business environment has been showing a tendency to decelerate due to negative influences such as ongoing high global inflation, unresolved political conflicts, and stringent monetary policies in many countries that continue to impact businesses. Additionally, trade and investment from other countries and a decline in export markets have affected economic growth. Despite these challenges, the economic growth rate for the third quarter of 2023 reached 5.33%, surpassing the growth rates of the first quarter (3.32%) and the second quarter (4.14%). This demonstrates that many government policies and solutions, which were resolutely implemented right from the beginning of the year under the strong direction of the government and the Prime Minister, have started to yield positive results. Notably, the determined efforts of ministries, sectors, and localities to vigorously execute public investment capital from the early months of the year, particularly in the third quarter of 2023, have been a shining success and a significant driving force for boosting economic growth in the third quarter and the first nine months of 2023.

According to this, the State budget (public investment) in the third quarter of 2023 is estimated to reach nearly VND183 trillion, equal to 25.3% of the annual plan, a 30.1% increase compared to the second quarter and a 27.3% increase from the same period last year. Over the course of the first nine months of 2023, the State budget capital is projected to reach nearly VND415.5 trillion, equal to 57.4% of the annual plan, and a 23.5% increase from the previous year. It's worth noting that by the end of September, the disbursement rate for public investment is estimated to exceed 51% of the plan, marking the first time the nation has exceeded the 50% disbursement milestone for public investment in the first nine months.

Specifically, as of the end of September 2023, public investment disbursement was estimated to reach over VND363 trillion, equal to 51.38% of the plan, which is approximately VND110 trillion higher than the same period in 2022, corresponding to a 46.7% increase. This is positive news for one of the three pillars of economic growth in our country, alongside domestic consumption and exports. Prior to this, by the end of June 30, 2023, the nation had only disbursed nearly VND216 trillion in public investment capital, reaching approximately 30.49% of the plan, which is roughly VND65 trillion higher than the same period in 2022, a 27.75% increase.

Deputy Minister of Planning and Investment Tran Quoc Phuong stated that unlike previous years, the public investment plan for 2023 is substantial, amounting to about VND711 trillion, encompassing both the annual plan for 2023 and additional funds from the Economic and Social Development Recovery Program under Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Economic and Social Development Recovery Program.

Therefore, it's evident that the significant increase in public investment disbursement in the first nine months of 2023, about VND110 trillion higher than the same period in 2022, reflects the resolute guidance from the government, the Prime Minister, and the determination of ministries, sectors, and localities in accelerating the progress of project implementation from the early months of the year, especially during the third quarter, to boost economic growth in the third quarter and the first nine months of 2023, as well as for the entire year.

Review and evaluate the implementation and disbursement of each project

To achieve these results, many important projects, inter-regional projects with ripple effects are being expedited in their implementation. This reflects the tremendous efforts of the government, the Prime Minister, central authorities, and localities in disbursement of public investment. In the third quarter of 2023, many new projects for the year have completed their investment preparation procedures and are being implemented. This signals a breakthrough in the disbursement of public investment for the remaining months of the year and serves as a basis for central authorities and localities to achieve the target of disbursing 95% of this year's public investment plan. This will compensate for the low growth in some sectors affected by the global economic slowdown and contribute to maximizing the economic growth target for 2023.

To promote the implementation of public investment in the last three months of 2023, the General Statistics Office Director, Nguyen Thi Huong, believed it was essential to focus on completing the legal framework regulating all stages of public investment projects, from investment preparation to project execution, completion, settlement, and handover for use. This should encompass various areas, including land, environmental protection, bidding, construction, natural resources, and minerals. Delays at any stage can affect the entire project, undermine investment efficiency, and reduce growth momentum.

Additionally, government ministries, sectors, and localities need to closely and resolutely implement government resolutions and directives from the Prime Minister regarding the acceleration, execution, and disbursement of public investment, the three national target programs for 2023, and the Economic and Social Development Recovery Program.

Simultaneously, efforts to disburse funds should be coupled with ensuring the quality and effective utilization of public investment. Reviewing and evaluating the implementation and disbursement capabilities of each project should be proactive and immediate. This will allow for adjustments to reallocate funds from projects with slow disbursement to well-disbursed projects that are lacking funds, following the prescribed regulations, to ensure full implementation and disbursement of the allocated funds.

Furthermore, there's a need to harmonize funds between the Economic and Social Development Recovery Program and the medium-term public investment plan for 2021-2025. This ensures the complete implementation of all funds from the Economic and Social Development Recovery Program in 2023 according to Government Resolution No. 10/NQ-CP.

As of the end of September, Vinh Phuc has the highest disbursement rate of public investment in the country at 73.62%. Following were Quang Ngai (63.32%), the Ministry of Transport (62.32%), Ben Tre (58.39%), and Tay Ninh (54.76%).

By Xuan Thao/ Ha Thanh

Related News

Changes in Canada

Changes in Canada's trade defense laws

VCN - Canada - a major trading partner of Vietnam - is making many changes in its trade defense investigation regulations, which has a significant impact on Vietnam's export activities.
Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.

Latest News

Removing legal hurdles in regular spending for capital assets

Removing legal hurdles in regular spending for capital assets

VCN - Mr. Bui Anh Binh, Deputy Director of the Department of Public Administration (Ministry of Finance) emphasized that the issuance of Decree No. 138/2024/ND-CP has created an important legal corridor, promptly removed obstacles, and created conditions for ministries, branches, and localities to proactively use regular expenditures to carry out tasks and projects outside the approved medium-term public investment plan, and to be proactive in performing assigned tasks.
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.

More News

Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Read More

Your care

Latest Most read
Removing legal hurdles in regular spending for capital assets

Removing legal hurdles in regular spending for capital assets

Mr. Bui Anh Binh, Deputy Director of the Department of Public Administration (Ministry of Finance) emphasized that the issuance of Decree No. 138/2024/ND-CP has created an important legal corridor
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ce
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment
Mobile Version