Necessary to direct drastically implementation of foreign loan disbursement from now until the end of the year

VCN - If ODA and foreign loans are well disbursed, they will promote Vietnam’s economic growth and help fulfill the financial and budget estimate tasks set by the National Assembly. However, at present, disbursement of capital is low and has become a matter of concern.
0429-4056mg-3187
Deputy Minister of Finance Tran Xuan Ha chaired an online conference with ministries and sectors to assess the disbursement of public investment capital from foreign loans.

This was mentioned by Deputy Minister Tran Xuan Ha at an online conference with ministries and sectors to assess public investment capital disbursement from foreign loans in the first five months of 2021 and solutions to increase disbursement in 2021 held by the Ministry of Finance.

Deputy Minister of Finance Tran Xuan Ha said in the first five months of the year, the disbursement rate of foreign loans only hit 7.53% compared to the plan assigned by the authority.

The disbursement of investment capital in general as well as the slow disbursement of foreign loans has affected Vietnam’s socio-economic development and the implementation of fiscal and budget estimate tasks in 2021. Besides that, it also affects relations with partners in implementing projects.

According to the Deputy Minister, implementing the policy of the Government and the National Assembly, from the beginning of the year, the Ministry of Finance and the Ministry of Planning and Investment sent many documents to ministries, sectors and localities requesting them to speed up the allocation of investment capital to investment projects, urgently enter and allocate to the Tabmis system to control expenditure.

It is also recommended that project owners and project management boards have a construction investment volume and complete the payment conditions to send a capital withdrawal application to the sponsor for disbursement in accordance with the prescribed regime.

However, with solutions implemented since the beginning of the year, the disbursement of public investment capital from foreign loans is still slow.

The Ministry of Finance held a meeting with ministries, sectors and project owners under the management of central assigned public investment capital from foreign loans with the purpose of clarifying and exchanging the causes of the problem to figure out the reason for slow disbursement.

The Deputy Minister said besides the reports of the ministries and sector deployed in the first five months of the year, information exchanged during the conference will also be summarised to report to the Prime Minister and the Government on the situation of solving problems and solutions to promote capital disbursement in the near future.

Reporting at the conference, Truong Hung Long, Director of the Department of Debt Management and External Finance (Ministry of Finance) said that the total estimate of foreign capital allocated from the central budget according to Decision No. 2185/Decision-TTg dated December 21, 2020 of the Prime Minister on the assignment of the State budget investment plan in 2021 to the ministries and sectors is VND16,636.75 billion.

By the end of May 31, 2021, the rate of importing estimates on Tabmis detailed by project compared to the foreign loan plan assigned by ministries and sectors hit 72.55% (VND 12,069.87 billion).

By the end of June 10, 2021, disbursement data for the 2021 public investment capital plan from ministries and sector was VND 1,253 billion, reaching 7.53% of the assigned estimate (only five of 13 ministries and sectors disburse public investment plans with foreign loans in 2021).

Ministries and sectors still disburse public investment capital from foreign loans according to the 2020 capital plan. From January 1, 2021 to June 10, 2021, total disbursement according to the 2020 capital plan of the ministries, industry is VND2,187.7 billion (double the disbursement according to the capital plan 2021).

As of the end of June 10, the Ministry of Finance has only received 129 official letters requesting capital withdrawal, has processed 129 applications for capital withdrawal with an average processing time of capital withdrawal applications is 1.5 days.

Long also mentioned problems affecting public investment disbursement of foreign loans by ministries and sectors, including reasons such as the project has not completed investment procedures, even though the negotiation procedures have not been completed or the loan agreement has not been signed, capital has been allocated; the project has proposed to stop implementation but still has the estimate, will have to cancel the estimate.

The project has been allocated capital and completed investment procedures but is slow to carry out work ready for investment such as delay in site clearance and resettlement; basic design has not been completed, mainly traffic projects.

At the conference, representatives of ministries and sectors like the Ministry of National Defense, Hanoi National University, the Ministry of Industry and Trade, the National University of HCM City, the Ministry of Labour, Invalids and Social Affairs, the Ministry of Transport, etc., informed about disbursement of projects, causes of delay, difficulties, problems and inadequacies.

0433-4142mg-3169
Deputy Minister Tran Xuan Ha delivered the concluding speech of the conference

Speaking at the end of the conference, Deputy Minister Tran Xuan Ha said the disbursement rate of foreign loans was just more than 7%, which was very low. The disbursement of investment capital that affects economic growth, well-disbursed ODA and foreign concessional capital would promote the country's economic growth and help perform financial tasks well. The main budget has been assigned by the National Assembly. Therefore, low disbursement of this capital was a matter of great concern.

Directing solutions to accelerate ODA disbursement, the Deputy Minister said from now until the end of the year, the most important solution is still the role of investors and project management boards. It is necessary to actively and drastically implement projects, complete investment procedures, implement site clearance, organise bidding, sign contracts, verify completed volumes, prepare documents for approval on making payment in accordance with regulations and return documents for advance payment to record revenue and expenditure.

“It needs to be a very drastic implementation direction, inspection and supervision, if there are any difficulties or problems, you must contact the ministries and sector to solve them in a timely manner. For the delay of the donors in the no-objection, it is necessary to report to the donors for appropriate settlement," the Deputy Minister emphasised.

By Hoài Anh/Thanh Thuy

Related News

Completely resolve problems and accelerate public investment disbursement

Completely resolve problems and accelerate public investment disbursement

VCN - In the first 4 months of 2024, the disbursement of public investment capital reached 17.46% of the plan assigned by the Prime Minister, higher than 15.65% in the same period last year. However, to further speed up this work, the Ministry of Finance believed that it needed to urgently overcome problems that have existed for a long time, especially in key projects.
"Creativity in revenue collection to achieve set goals in difficult contexts"

"Creativity in revenue collection to achieve set goals in difficult contexts"

VCN - The Ministry of Finance held an online briefing conference to evaluate the implementation of financial and budget work in April and deploy the work program for May 2024. Minister of Finance Ho Duc Phoc chaired the conference.
Fiscal policy is expanded and flexible to promote economic growth 2024

Fiscal policy is expanded and flexible to promote economic growth 2024

VCN - Recently, the Ministry of Finance has proactively researched, proposed, and submitted to competent authorities as well as issued financial support policies for the economy, with a total of about VND700 trillion. This is a particularly important resource that contributes to promoting the economic recovery process after the pandemic. According to experts, in 2024, flexible and prudent fiscal policy will continue to be the foundation for the economy.
Make use of the most of favorable factors for economic growth

Make use of the most of favorable factors for economic growth

VCN - Commenting that the economy can absolutely achieve growth according to the set target, but according to Dr. Nguyen Tu Anh (photo), Director of Department, Director of the Center for Economic Information, Analysis and Forecasting, Central Economic Commission, management agencies need to resolve and clear the bottlenecks that have been identified since real estate market, corporate bonds... to restore aggregate demand.

Latest News

After six consecutive increase years, tax revenue from real estate transfer plunges

After six consecutive increase years, tax revenue from real estate transfer plunges

VCN – In 2023, real estate market was in extremely difficult time, purchasing power and liquidation had a sharp decline and there was a lack of cash flow, the amount of personal income tax (PIT) from real estate transfer activities plunged.
Improve processes and enhance experience to rebuild trust in life insurance

Improve processes and enhance experience to rebuild trust in life insurance

VCN - In Vietnam, the space and potential of the life insurance industry is still very large, so it is necessary to focus on implementing new solutions, improving product quality, and helping the market develop sustainably.
PM chairs meeting on fiscal, monetary policy management

PM chairs meeting on fiscal, monetary policy management

Prime Minister Pham Minh Chinh chaired a meeting in Hanoi on May 16 with ministries and agencies to discuss the coordination of fiscal and monetary policies aimed at maintaining macroeconomic stability, controlling inflation and promoting growth.
Many tax management solutions for e-commerce

Many tax management solutions for e-commerce

VCN - In Vietnam, the e-commerce market is increasingly growing and expanding with a diversity of operating models, many participants... posing great challenges for tax management.

More News

Tax, land rent payment deadlines to be extended this year

Tax, land rent payment deadlines to be extended this year

Payment deadlines for value added tax (VAT), corporate income tax, personal income tax, and land rent in 2024 are set to be extended, involving a total tax value of nearly 84 trillion VND (3.3 billion USD).
Tax compliance management in the digital economy

Tax compliance management in the digital economy

VCN - The management of tax compliance in the digital economy has faced many challenges compared to the traditional economy. The transactions made via the internet environment and digital platforms have caused monitoring, controlling and management difficulties. Therefore, it is required to have appropriate solutions for management and ensuring revenue sources.
Hai Phong: Budget revenue reached more than VND40,000 billion

Hai Phong: Budget revenue reached more than VND40,000 billion

VCN - The results of Hai Phong City's revenue collection achieved a good growth rate, expected to reach hundreds of trillion VND for the third consecutive year.
Price adjustment should be in implemented in appropriate time to control inflation

Price adjustment should be in implemented in appropriate time to control inflation

VCN – The increase in base salary, deposit interest rates, exchange rates and gold prices, and adjustment of prices of public services and State-managed goods are “threats” in price management and inflation control from now until the end of the year. However, Dr. Nguyen Duc Do, Deputy Director of the Institute of Economics and Finance (Academy of Finance), these are not too big impacts, it is necessary to monitor and calculate the appropriate time and level.
Closely follow the situation, research and propose many solutions about taxes and fees to support the economy

Closely follow the situation, research and propose many solutions about taxes and fees to support the economy

VCN - In 2024, along with evaluating and summarizing the implementation of support solutions that have been issued, the Ministry of Finance will continue to coordinate with ministries and branches to closely monitor the actual situation and forecast the situation of socio-economic development to research and propose to competent authorities about support solutions on taxes and fees to apply in 2024.
Prevent corruption and group interests in developing financial laws

Prevent corruption and group interests in developing financial laws

VCN - In order to prevent corruption, group interests, and local interests, the Ministry of Finance requires its subordinate units to strengthen the building and perfecting legal system and law enforcement organization. Accordingly, the Ministry will strictly handle corruption, negative acts and group interests in policy development.
Strive to effectively implement Global Minimum Tax in Vietnam

Strive to effectively implement Global Minimum Tax in Vietnam

VCN – The application of Qualifying domestic minimum top-up tax (QDMTT) in implementing Global Minimum Tax allows to deduct the value of tangible assets and salaries when calculating top-up tax. This shows that the Global Minimum Tax aims to encourage the actual investment activities in the investment recipient country through the existence of tangible assets and workers, Deputy Director General of the General Department of Taxation Dang Ngoc Minh said.
State Treasury raises over $890 million  worth of G-bonds in April

State Treasury raises over $890 million worth of G-bonds in April

The State Treasury mobilised nearly VNĐ22.75 trillion (US$894.52 million) worth of Government bonds in April via 17 auctions on the Hanoi Stock Exchange (HNX).
State expenditure in the first four months of 2024 reaches VND522.2 trillion

State expenditure in the first four months of 2024 reaches VND522.2 trillion

VCN – In the first four months of the year, the State budget spending was performed under the estimate, meeting requirements of socio-economic development, national defense, security, and state management and payment of due debts.
Read More

Your care

Latest Most read
After six consecutive increase years, tax revenue from real estate transfer plunges

After six consecutive increase years, tax revenue from real estate transfer plunges

VCN – In 2023, real estate market was in extremely difficult time, purchasing power and liquidation had a sharp decline and there was a lack of cash flow, the amount of personal income tax (PIT) from real estate transfer activities plunged.
Improve processes and enhance experience to rebuild trust in life insurance

Improve processes and enhance experience to rebuild trust in life insurance

VCN - In Vietnam, the space and potential of the life insurance industry is still very large, so it is necessary to focus on implementing new solutions, improving product quality, and helping the market develop sustainably.
PM chairs meeting on fiscal, monetary policy management

PM chairs meeting on fiscal, monetary policy management

Prime Minister Pham Minh Chinh chaired a meeting in Hanoi on May 16 with ministries and agencies to discuss the coordination of fiscal and monetary policies aimed at maintaining macroeconomic stability, controlling inflation and promoting growth.
Many tax management solutions for e-commerce

Many tax management solutions for e-commerce

VCN - In Vietnam, the e-commerce market is increasingly growing and expanding with a diversity of operating models, many participants... posing great challenges for tax management.
Completely resolve problems and accelerate public investment disbursement

Completely resolve problems and accelerate public investment disbursement

In the first 4 months of 2024, the disbursement of public investment capital reached 17.46% of the plan assigned by the Prime Minister, higher than 15.65% in the same period last year.
Mobile Version