Gov’t determined to speed up public investment disbursement

The Vietnamese Government has set up six working groups to speed up the disbursement of public investment to create impetus for post-pandemic economic growth.

A component project of the North-South Expressway under construction. Speeding up the disbursement of public investment was expected to drive economic growth after the pandemic. — VNA/VNS Photo Việt Hùng

The Vietnamese Government has set up six working groups to speed up the disbursement of public investment to create impetus for post-pandemic economic growth.

This was a bold effort raised after the disappointing results of public investment disbursement in the first months of this year, especially of foreign-sourced capital.

The working groups would be in charge of identifying difficulties and problems in the implementation of public-invested projects, especially projects which use official development assistance (ODA) and concressional loans from foreign donors at ministries, central-level agencies and localities and recommending solutions to accelerate the disbursement of public investment and increase capital use efficiency.

The latest updates from the Ministry of Finance showed that the disbursement of public investment was estimated at 18.48 per cent in January - April, slightly lower than the rate of 18.65 per cent of the same period last year.

Notably, the disbursement of foreign-sourced capital was at only 3.25 per cent while domestic-sourced at 19.57 per cent.

Seven ministries and eight localities had a disbursement rate of more than 25 per cent, including the Việt Nam Bank for Social Policies (91.12 per cent), Vietnam Development Bank (59.64 per cent), the Central Committee of Vietnam Fatherland Front (48.86 per cent), the State Bank of Vietnam (35.76 per cent), Bình Thuận Province (33.9 per cent) and Phú Thọ Province (33.4 per cent).

Forty-three out of 51 minitries and central-level agencies and 28 out of 63 provinces and cities had disbursement rates below 17 per cent.

The ministry pointed out that the slow disbursement of public investment was due to the lack of determination and drastic measures in implementing public-invested projects, some faced problems in land clearance and selecting contractors while the skyrocketing prices of construction materials also caused delays in implementation.

The ministry’s statistics also revealed that twelve ministries and central-level agencies and 21 provinces and cities had not completed the capital allocation plan.

To speed up public investment disbursement, the Ministry of Finance asked for the cooperation of the Ministry of Planning and Investment to transfer the capital which had not been allocated as of the end of March to ministries, agencies and localities with ongoing projects which had demand for capital.

Deputy Minister of Planning and Investment Trần Quốc Phương said that the disbursement of public investment was often strengthened in the two last quarters of the year.

Simplifying administrative procedures would also help speed up public investment disbursement.

Specifically, the State Treasury shortened the capital settlement time from four days to one for the advance and payment of 80 per cent of the completed volume. Other payments would be made within three working days.

According to the ministry, the focus would be placed on enhancing the accountability of the heads in implementing public-invested projects. In addtion, the problems related to land clearance and resources must also be tackled.

Speeding up the disbursement of public investment was expected to create spillover effects to accelerate the post-pandemic economic growth.

The disbursement rates reached 91 per cent in 2020 and 93 per cent in 2021. — VNS

Source: VNA
vietnamnews.vn

Related News

Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN – Important national projects, inter-regional transport projects, riverbank and coastal erosion treatment projects all have disbursement rates lower than the estimated average disbursement rate of the whole country, the Ministry of Finance said.
Disbursement of public investment from foreign loans reaches 39.06% of the plan

Disbursement of public investment from foreign loans reaches 39.06% of the plan

VCN - At a conference held on December 3, 2024, to discuss the disbursement progress of public investment from foreign loans in the final months of the year, the Department of Debt Management and External Finance reported that ministries and agencies had disbursed over VND3.285 trillion. Notably, six ministries proposed returning a total of VND2.0924 trillion from the 2024 allocated budget.
Accelerating public investment in national key transportation projects

Accelerating public investment in national key transportation projects

VCN - According to the Ministry of Finance, the disbursement of funds for national key transportation projects in the first ten months of 2024 exceeded the average disbursement rate for other sectors. However, the pace has slowed in recent months.
Public investment spending up 1.8% in first 10 months of 2024

Public investment spending up 1.8% in first 10 months of 2024

VCN - Public investment from Vietnam’s state budget saw steady growth in the first ten months of 2024, reaching 64.3% of the annual target—an increase of 1.8% compared to the same period last year.
Comment

Latest News

Personal income tax proposed for interest on some bank savings accounts

Personal income tax proposed for interest on some bank savings accounts

Instead of the current personal income tax exemption on interest from all individual bank savings accounts, the proposal would exempt tax only for low amounts of savings.
Banks set for aggressive bond issuance in 2025 to fuel growth

Banks set for aggressive bond issuance in 2025 to fuel growth

With a higher credit growth goal set by the SBV, banks are ramping up their efforts to secure funding through bond issuance.
Central bank cuts interest rate on bills for first time in 2025

Central bank cuts interest rate on bills for first time in 2025

According to data from the financial data provider Wichart, the SBV issued VNĐ19.6 trillion of bills in the past week. The interest rate on the bills decreased by 0.1 percentage point, from 4 per cent to 3.9 per cent on February 14.
Focusing on inspecting inventory of public assets at units with large and complex assets

Focusing on inspecting inventory of public assets at units with large and complex assets

VCN - According to Official Dispatch No. 1456/BTC-QLCS on inspecting the preparation and implementation of the General Inventory of Public Assets recently issued by the Ministry of Finance, the inspection of the inventory of public assets focuses on units with large asset scale and large number of inventory items, complex assets, and slow implementation progress.

More News

The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

VCN - The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more; the average growth rate of the consumer price index (CPI) to about 4.5-5%.
Fiscal, monetary policies support demand stimulation, price stabilisation

Fiscal, monetary policies support demand stimulation, price stabilisation

These efforts, in conjunction with the implementation of monetary policies and other macroeconomic policies, aim to solve difficulties for businesses and the public, stabilise the macroeconomy, control inflation, ensure the balance of the economy, promote economic growth, and secure social welfare and people’s livelihoods.
Vietnam secures VND 157 billion from state enterprise divestment in 2024

Vietnam secures VND 157 billion from state enterprise divestment in 2024

VCN - The Ministry of Finance reported that in 2024, the divestment of state capital in 5 enterprises (F1) generated VND 157 billion from an initial value of VND 145 billion
Vietnam gears up for potential inflation impact in 2025

Vietnam gears up for potential inflation impact in 2025

VCN - For sound price management and inflation control, Deputy Prime Minister Ho Duc Phoc directed officials to vigilantly track both domestic and international market dynamics. The goal is to proactively develop flexible strategies and solutions, enabling a swift response to any emerging challenges.
VN’s credit conditions in 2025 expected to be stable

VN’s credit conditions in 2025 expected to be stable

The credit conditions for Việt Nam will stabilise in 2025, after improving substantially over the past year, the rating agency VIS is forcasts.
State revenue in first month of the year equal to 14% of the estimate

State revenue in first month of the year equal to 14% of the estimate

VCN - According to the Ministry of Finance, in January - the first month of 2025, the total state budget revenue is estimated at VND275.9 trillion, equal to 14% of the estimate; meanwhile, the total state budget expenditure is estimated at VND134.4 trillion.
Securities 2025 expects a breakthrough in scale and quality

Securities 2025 expects a breakthrough in scale and quality

VCN – The positive factors inherent in the macro economy and the Vietnamese stock market will continue to create the foundation for the market to maintain stability, good liquidity, and growth in both scale and quality in the new year of At Ty 2025, Chairwoman of the State Securities Commission Vu Thi Chan Phuong said.
Cash reserves in stock accounts at six-quarter low amid margin rise

Cash reserves in stock accounts at six-quarter low amid margin rise

These funds are readily available in investor accounts, but remained undeployed as of the year-end.
Five solutions for developing stock market in 2025

Five solutions for developing stock market in 2025

VCN - On February 5, 2025, at the Gong-beating ceremony to open the stock trading at the Ho Chi Minh City Stock Exchange (HOSE), Deputy Minister of Finance Nguyen Duc Chi introduced five solutions for comprehensive development of the stock market.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Personal income tax proposed for interest on some bank savings accounts

Personal income tax proposed for interest on some bank savings accounts

Instead of the current personal income tax exemption on interest from all individual bank savings accounts, the proposal would exempt tax only for low amounts of savings.
Banks set for aggressive bond issuance in 2025 to fuel growth

Banks set for aggressive bond issuance in 2025 to fuel growth

With a higher credit growth goal set by the SBV, banks are ramping up their efforts to secure funding through bond issuance.
Central bank cuts interest rate on bills for first time in 2025

Central bank cuts interest rate on bills for first time in 2025

According to data from the financial data provider Wichart, the SBV issued VNĐ19.6 trillion of bills in the past week. The interest rate on the bills decreased by 0.1 percentage point, from 4 per cent to 3.9 per cent on February 14.
Focusing on inspecting inventory of public assets at units with large and complex assets

Focusing on inspecting inventory of public assets at units with large and complex assets

VCN - According to Official Dispatch No. 1456/BTC-QLCS on inspecting the preparation and implementation of the General Inventory of Public Assets recently issued by the Ministry of Finance, the inspection of the inventory of public assets focuses on units
The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more
Mobile Version