Public investment - Expectations from key transportation projects

VCN - As one of the three main growth engines of the economy, in recent times, public investment has played an important role, leading and activating all social resources for development investment. This important driving force continues to have very positive signals with disbursement results reaching 2.58%, higher than the same period. 2024 strives to achieve a disbursement rate of at least 95%.
Prioritizing the allocation of public investment capital Prioritizing the allocation of public investment capital
The State Treasury implements nine key tasks in 2024 The State Treasury implements nine key tasks in 2024
Public investment - Expectations from key transportation projects
Panorama of construction atmosphere at the "great construction site" of Long Thanh airport. Photo: ACV

VND 657,000 billion in public investment in 2024

Speaking at the 9th meeting of the State Steering Committee for national important works and projects in the transportation sector taking place on February 16, Prime Minister Pham Minh Chinh said that along with the effective promotion of growth momentum, focusing on disbursement of public investment with traffic projects put into operation would contribute to reducing logistics costs for enterprises, reducing input costs, increasing competitiveness of products, enterprises and the economy; creating new development space because wherever having the roads, new development space would be opened up, especially development of industries, urban areas, services... Besides, transportation projects also created new development space, because wherever having the roads, new development space would be opened up, especially development of industries, urban areas, services... The Prime Minister affirmed that the breakthrough choice in infrastructure, especially in the field of transportation was correct and wise, a decisive factor for immediate and long-term development.

“In recent years, investment and development of transport infrastructure have been promoted, creating movements and trends not only at the central level but also local level. 2021-2022 was the period of project initiation, preparation and approval, 2023 implemented simultaneously, and 2024 will accelerate the construction of key and national important transportation projects with a very large total investment - VND 422,000 billion “, Prime Minister Pham Minh Chinh emphasized.

To meet the goal of completing and putting into operation 3,000km of highways, a number of airports and key transportation projects by 2025, in recent times the Government, the Prime Minister, and Deputy Prime Ministers have drastically directed the removal of difficulties and accelerated implementation progress. The Steering Committee for important national and key works and projects in the transport sector has met monthly. The Prime Minister, Head of the Steering Committee, has provided drastic, specific direction and clarified responsibilities for ministries, branches and localities.

Sharing information on the implementation progress of key transportation projects, according to the Ministry of Transport, the country currently had 34 large projects, 86 important national component projects on key transportation sector in 46 provinces and centrally run cities. Including 5 railway projects, 2 airport projects, and road projects, mainly highways and ring roads in the Hanoi Capital region, and ring roads in Ho Chi Minh City. Regarding progress, the Eastern North-South Expressway project had completed 9/11 component projects for the 2017-2020 period and the My Thuan-Can Tho project was implemented right on schedule, bringing the total number of expressways to 1,892 km, of which 475 km in 2023 alone; the remaining 2 projects were invested in the form of BOT contracts, investors and contractors were actively implementing to complete in accordance with the Prime Minister's direction.

For 12 component projects in the 2021-2025 period, although the first implementation years still had many problems for land and construction materials, investors and contractors had made efforts to organize construction and closely follow progress proposed. For 5 East-West highway and ring road projects, implementation progress is still slow, except for some bidding packages being managed by Ho Chi Minh City and Long An (Ring Road 3), Hanoi (Ring Road 4), Ba Ria-Vung Tau (Bien Hoa-Vung Tau expressway), Dak Lak and Khanh Hoa (Khanh Hoa-Buon Ma Thuot) which are implemented right on schedule. Other expressway projects such as stretch of road Tuyen Quang-Ha Giang passing through Ha Giang province; Cao Lanh-An Huu; Ben Luc-Long Thanh are being implemented by investors and contractors closely on the set schedule.

Also according to the Ministry of Transport, two important urban railway projects, Nhon-Hanoi station and Ben Thanh-Suoi Tien project, were being reviewed by Hanoi and Ho Chi Minh City to remove problems in contracts, training personnel, completing fire prevention and fighting procedures, project acceptance, and system safety certification to strive for operation in July 2024.

For the Long Thanh international airport project, ongoing construction packages such as the passenger terminal package and the construction package of works serving flight management have been approved by Vietnam Airports Corporation (ACV), Vietnam Air Traffic Management Corporation (VATM) directed contractors to actively follow the progress. Notably, the bidding package for passenger terminal T3 at Tan Son Nhat international airport was implemented by ACV, closely on the set schedule, until now disbursement reached VND 2,477/10,825 billion (23%)...

Accelerating capital disbursement right from the beginning of the year

Assessing the disbursement of public investment capital in recent times, Minister of Planning and Investment Nguyen Chi Dung affirmed that the bright spot was that we had restructured public investment in recent times, focused on resources into large projects, key and important transportation projects, especially, the highway project. During the period 2016-2020 as well as when developing the medium-term public investment plan for the period 2021-2025, the Ministry of Planning and Investment advised the Government and the Prime Minister to allocate State budget capital resources for transport sector (alone central budget capital allocated for the transport sector accounted for about 53.4% of total central budget investment expenditure), of which the Ministry of Transport alone was allocated nearly VND 300 trillion of central budget capital, the highest of all ministries, central and local agencies.

As one of the country's economic engines, in 2024, Hanoi City plans to start construction on 5 key transportation projects including: Thuong Cat bridge; Van Phuc bridge; road from My Dinh (Hanoi) to Bai Dinh (Ninh Binh); East frontage road of Phap Van - Cau Gie expressway; Construction of Ring Road 3.5 from Thuong Cat Bridge to Highway 32. According to Vice Chairman of Hanoi People's Committee Ha Minh Hai, the city's total public investment plan for 2024 was VND 81,033 billion. Of which, the central budget was VND 9,451 billion, the local budget was VND 71,582 billion. Thus, the city's 2024 public investment plan was 1.4 times higher than the 2023 public investment plan (57,305 billion). VND. The city allocated and assigned the development investment capital plan for 2024 in accordance with the provisions of the State Budget Law, the Public Investment Law and the Prime Minister's directions and instructions of the Ministry of Finance and Ministry of Planning and Investment.

“To promote disbursement of public investment capital, the city will continue to focus and drastically direct the management of the 2024 public investment plan. First, the city focuses on a number of key contents such as thoroughly grasping the promotion of disbursement of the 2024 public investment plan right from the beginning of the year; Strengthening administrative discipline, seriously implementing the regular briefing regime for the whole city quarterly and monthly in all areas. At the same time, speeding up investment procedures for projects; focus on directing and operating to promote the progress of the city's key projects in the 2021-2025 period, large-scale projects, transitional projects to focus on completing projects, bringing into exploitation and use. Districts and towns promote the disbursement of budget projects which the city assigns the districts, and towns as the investor and projects belonging to district-level tasks. Along with that, the city also has measures to ensure revenue; direct the management of the 2024 public investment plan in accordance with revenue sources, avoiding capital construction debt..”, Vice Chairman of Hanoi People's Committee Ha Minh Hai added.

From the perspective of State management agencies, to successfully implement the 2024 public investment Plan, Minister Nguyen Chi Dung said that it required a spirit of innovation, high political determination, and greater responsibility of levels and sectors from central to local levels. In particular, needing a comprehensive solution with the first requirement that identified public investment as the top priority for consistency in management work. Reality showed that within the same institution, legal policy, there were ministries, branches and localities that disbursed funds well, thanks to the close and drastic direction of their leaders.

Accordingly, the fundamental solution that should be implemented is to review and improve the legal system regulating the activities of public investment projects. First of all, immediately correct the inadequacies discovered in recent times (noting which contents fall under the Government's authority that need to be urgently researched and submitted to the Government for amendment) in order to promote disbursement of public investment capital, improve the efficiency of capital use, and create motivation for socio-economic development. On the part of ministries, branches and localities, it is necessary to uphold the sense of responsibility to set an example an example and promote the role of leaders in leadership, direction and implementation; Regularly review, urge, and promptly detect and remove difficulties and problems arising from each project, especially key projects; Do a good job of investment preparation, project implementation preparation, check and review each project's capital plan arrangement in 2024, especially newly started projects, select projects with sufficient investment procedures. meeting capital allocation conditions according to regulations, improving readiness, feasibility, and ability to implement projects...

By Xuan Thao/ Binh Minh

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