Foreign capital disbursement increases but has not improved

VCN - According to statistics, the disbursement rate of public investment capital from foreign loans in September increased by 3.14%, reaching more than VND 4,315 billion. To achieve target of disbursement of public investment capital from foreign loans as committed, from now to the end of the year, ministries and sectors still need to make great efforts.
HCMC: breakthrough in capital disbursement HCMC: breakthrough in capital disbursement
HCM City: Discuss solutions for public investment capital disbursement HCM City: Discuss solutions for public investment capital disbursement
Promote capital disbursement from ODA, foreign concessional loans Promote capital disbursement from ODA, foreign concessional loans
2001-4740-7-4021-7-1807-img-0037

The inspection of time and determination of foreign capital by the State Treasury must be not more than three working days. Photo: Thuy Linh

10 ministries and sectors commit to complete disbursement

In the first nine months of 2020, ministries and sectors have focused on disbursing the estimate of 2019 and the capital is extended, transferred, worth VND 2,671 billion.

Notably, the Ministry of Finance recorded that 10 of 12 ministries and sectors have committed to completing disbursement after revising down a partial or whole capital plan, including: Ministry of Education and Training, Ministry of Transport, Ministry of Health, Ministry of Industry and Trade, Ministry of Science and Technology, Ministry of National Defence, Ministry of Agriculture and Rural Development, Ministry of Natural Resources and Environment, Ministry of Culture, Sports and Tourism.

Dinh Minh Tung- Deputy Director of the Financial Planning Department, Ministry of Education and Training said as of September 30, the ministry’s disbursement rate reached 39% of the assigned capital plan, up by 18% compared to the rate up to August. Thus, the Ministry of Education and Training was the top ministry with the highest disbursement progress in September. Tung said the result is thanks to the drastic direction of the ministry’s leaders. In addition, the ministry has consolidated the working group to promote disbursement, at the same time assigned its leaders to take charge of some project groups to promptly remove difficulties and problems for some projects, so the disbursement rate has increased higher than in the previous month.

Nguyen Anh Dung- Deputy Director of Financial Planning Department under the Ministry of Transport, said that over the past time, the ministry has directed the project management board to work with localities to hasten site clearance and quickly deploy bidding for projects to accelerate disbursement in the final months of the year.

Other ministries sectors such as the Ministry of Health, the Ministry of Natural Resources and Environment and the Ministry of Defence also said that they have applied solutions to accelerate disbursement.

Comment soon to remove problem

Although the disbursement rate in September was more positive than August, generally, the disbursement rate of projects using ODA capital and foreign concessional loans was low due to the lack of disbursement volume.

According to Hoang Hai- Deputy Director of the Department of Debt Management and External Finance, this issue stems from when projects have not completed domestic investment procedures, such as the completion of site clearance, contract approval and slow implementation of bidding, including suing during the bidding process of some projects. In addition, the project preparation process is prolonged, investment preparation is not thorough, and other objective factors lead to changes in design nad project adjustment in the implementation process, such as the extension of deadline of implementation and disbursement. Meanwhile, the procedures for adjusting investment policy decisions and adjusting loan agreements are delayed so there is no legal basis for disbursement.

Cao Manh Cuong-Deputy Director of Foreign Economic Relations Department under the Ministry of Planning and Investment was quite concerned about disbursement results from now to the end of the year. Cuong that although the ministries and sectors committed to completing disbursement, the actual disbursement data in the past time has not significantly improved. The disbursement rate has increased but due to that the capital plan has been cut rather than real changes.

One problem raised by many ministries and sectors is the time limit to control the capital withdrawal application is too long, causing slowdown. According to Hoang Hai, the Ministry of Finance has shortened the processing time for valid capital withdrawal applications within one to two working days compared to current regulations. For the capital withdrawal applications that are not eligible for settlement, the Ministry of Finance has sent an official dispatch to return them to the project owner to complete, ensure compliance with the law on budget expenditure and regulations of the loan agreement. By the end of September, the Ministry of Finance had received 560 applications of capital withdrawal, of which 554 applications were resolved, accounting for 98.8%. The Ministry of Finance has returned six applications and required to be completed soon.

Nguyen Viet Hong-Deputy General Director of the State Treasury said that the inspection of time and determination of foreign capital by the State Treasury must be not more than three working days. However, this is only one step in the process of disbursing the public investment capital from the foreign loan because after the State Treasury has confirmed the capital, there are steps such as signing the withdrawal application, the donors transfer capital to disburse.

To promote disbursement of public investment capital from foreign loans, in a recent report to the Prime Minister, the Ministry of Finance continued to propose ministries and sectors to seriously implement the Prime Minister's directions. For problems or unclear policies, ministries and sectors should soon consult relevant agencies to study, amend and supplement.

For capital plans in 2020 that have applied for cuts or transferred to other ministries and localities, the Ministry of Finance suggests ministries and sectors specify which projects are to be cut, which projects cannot be fully disbursed in 2020 and which projects are only partially disbursed to add the capital plan for those projects into the investment plan 2021. Thereby, ensuring funds to implement projects according to time and progress committed to the donors in the foreign loan agreements.

If the 2020 capital plan proposed for the reduction of ministries has not yet been allocated for projects due to poor planning, ministries and sectors can learn from experience when building plans for 2021 and the following years. Ministries and sectors should focus on resolving completely; coordinate with donors and concerned agencies and localities to remove difficulties and problems, especially large investment projects and projects that are nearly expired disbursement.

Truong Hung Long - Director of Department of Debt Management and External Finance:

The Ministry of Finance commits to continue to consider disbursement of public investment capital from ODA loans and concessional foreign loans as the key task of the year and to coordinate with the governing body in matters related to negotiations and signing. At the same time, complete the effective procedures of the loan agreement, adjust the loan agreement (if any); sign re-lending contracts, review and accelerate progress of disbursement and discuss with donors problems arising in the disbursement process.

By Hong Van/Ngoc Loan

Related News

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.
Accelerate implementation of solutions to disburse public investment capital

Accelerate implementation of solutions to disburse public investment capital

VCN - Facing the impact of storm No. 3 on economic growth, many experts continue to believe that public investment will play a key role in economic recovery and growth for the entire year of 2024. However, there is only one quarter left until the end of 2024. The target of disbursing at least 95% of investment capital is facing many difficulties.
Continue to publicly disburse public investment capital, many key projects have low rates

Continue to publicly disburse public investment capital, many key projects have low rates

VCN - The Ministry of Finance continues to publicize the disbursement rate of public investment capital plans of many key projects, notably that many projects and component projects have very low disbursement rates.
Public investment disbursement rate in 8 months reaches about 40.5% of the plan

Public investment disbursement rate in 8 months reaches about 40.5% of the plan

VCN - The low disbursement rates of some localities that have large disbursement plans, have greatly affected the overall disbursement rate of the whole country, the Ministry of Finance released.

Latest News

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...
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.

More News

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.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
Ensure timely and effective management and use of public asset

Ensure timely and effective management and use of public asset

VCN – In order to promptly and effectively implement public asset management and use, ensuring compliance with legal regulations, the Ministry of Finance has just issued an official dispatch requesting ministries, branches and localities to comply with regulations in the Government’s Decree No. 114/2024/ND-CP dated September 15, 2024.
Accelerating decentralization in public asset management

Accelerating decentralization in public asset management

VCN - Amending the Law on Management and Use of Public Assets aims to improve regulations on accelerating decentralization and improving efficiency in management and use of public assets, and promoting financial resources, ensuring that the unified application the Law on Management and Use of Public Assets and other legal documents.
Difficulty in finding banks eligible to receive compulsory transfers

Difficulty in finding banks eligible to receive compulsory transfers

VCN - Reporting to the National Assembly, the State Bank of Vietnam (SBV) said that one of the difficulties in restructuring the credit institution system is the long process of finding and negotiating banks eligible to receive compulsory transfers.
Businesses can choose a suitable electronic invoice model generated from the cash register

Businesses can choose a suitable electronic invoice model generated from the cash register

VCN - The Ministry of Finance said that individual business households can choose a suitable model to apply electronic invoice solutions from cash registers, depending on the number of invoices used in the year, in the month and the current status of software solutions and technical infrastructure.
State budget revenue estimate 2025 assessed as positive level despite potential challenges

State budget revenue estimate 2025 assessed as positive level despite potential challenges

VCN – Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that the state budget revenue for 2025 is estimated at VND 1,966.8 trillion, an increase of 15.6% compared to the estimate for 2024.
Read More

Your care

Latest Most read
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
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

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 assigne
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

According to the report 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.
Mobile Version