Disbursement of foreign-sourced public investment capital remains slow

About 9 trillion VND (382 million USD) of public investment capital from foreign sources has been disbursed in the first 11 months this year, accounting for only 26% of the allocated capital.(VNA: Photo)

About 9 trillion VND (382 million USD) of public investment capital from foreign sources has been disbursed in the first 11 months this year, accounting for only 26% of the allocated capital.

According to the Finance Ministry’s Department of Debt Management and External Finance, 13 ministries and 59 localities across the country were allocated nearly 34.6 trillion VND of foreign-sourced capital for public investment projects this year.

Vo Huu Hien, vice head of the department said that until now, 8 ministries and 33 localities wanted to return the capital as they are unable to disburse it on time.

Hien said that reasons for the slow disbursement included failure to complete investment procedures or procedures to adjust investment policies, changes in credit agreements, or natural disasters.

The official added that in May 2022, the Prime Minister also allocated about 5.32 trillion VND from remaining capital in 2021 to ministries and localities, and many localities had focused efforts on disbursing this capital rather than this year's.

The implementation of foreign-sourced programmes and projects faces problems, mainly in delayed site clearance, resettlement, and bidding; problems in bidding and appraisal; and adjustment of projects' investment policies.

Obstacles in terms of regulations and mechanisms, and natural disasters and floods in some regions also hindered the disbursement./.