Remove bottlenecks in public investment to boost economic recovery

	Fiscal policy helps economic recovery and development
	Overspending in 2022 drops but still ensures payment for economic recovery program
	Prioritize economic recovery in the year- end months

Seminar scene

Constraints in public investment need to be addressed soon

Doan Anh Tho, Deputy Auditor General, affirmed that public investment continuously played a role as a catalyst, leading other economic components in Vietnam.

However, in recent times, especially after the COVID-19 pandemic, there have been limitations in the effectiveness of public investment in Vietnam, such as the dispersion of public investment in some sectors, and areas, and the untimely completion of investment projects. Additionally, the disbursement rate of public investment has been low, and there were cases of misappropriation and waste in public investment.

Doan Anh Tho, Deputy Auditor General

Tho stressed that based on practical audits, the causes of these limitations in public investment, especially the slow disbursement of public investment funds, which did not meet plans, are diverse.

Some reasons include legal systems not being consistent between the Public investment law and the State budget law, as well as specialized laws, and the current laws do not cover all investment activities. The procedures, processes, and formalities are complex and overlapping. Land planning, land auctions, and land use changes still face many obstacles and inadequacies. Moreover, each year, each funding source, and each investment project has its own specific characteristics.

Furthermore, at various levels and within different sectors, the active roles and responsibilities of leaders have not been fully emphasized. There may still be some avoidance. The capacity of some investors and contractors does not meet the requirements. Coordination between government levels, localities, and between ministries and sectors is not yet tight. Inspection, examination, and supervision are not being strengthened and are not effective.

"In the current period, these constraints need to be addressed promptly," emphasized Tho.

According to Vu Thanh Hai, Chief State Auditor No. IV, in 2022, the disbursement rate of public investment funds reached 69.07% (achieving 79.64% of the Prime Minister's plan). In the first nine months of 2023, the disbursement rate of public investment funds reached 50.68% (achieving 51.38% of the Prime Minister's plan).

Slow disbursement of public investment funds leads to project delays and risks causing waste, capital mobilization, reduced investment efficiency, and affects the resources and motivation for development.

Identify correctly and promptly address bottlenecks

Cao Thi Minh Nghia, Deputy Head of the General Department of National Economic Synthesis (Ministry of Planning and Investment), affirmed that identifying and promptly addressing bottlenecks was an important and essential political task to ensure the successful achievement of economic growth targets in 2023.

According to her, the most important solution in the coming time is to immediately adjust the legal regulations regarding investment activities, reduce administrative procedures for raw material permits, land use change procedures for reforestation and rice cultivation, and capital withdrawal from sponsors in the implementation of projects to enhance disbursement of foreign investment and mobilize foreign currency for the country.

Regarding the group of solutions for guidance, management, and coordination, specific tasks need to be identified for each level, sector, and locality in all activities related to improving investment project initiation procedures, project allocation, planning, and disbursement of public investment plans for the year.

Especially, it's essential to enhance responsibility in coordinating between general departments and specialized agencies to expedite the review process, shorten consultation times, and resolve procedures related to project appraisal and capital disbursement.

According to Nghĩa, it's necessary to decisively handle cases involving projects with weak specialized capacity that exhibit irregularities and negative aspects affecting the progress and disbursement of the project.

"Resolutely rectify the situation of widespread and inefficient investment, focusing on reviewing and significantly reducing the number of projects, especially new construction projects. The key is to eliminate the 'request-give' mechanism and combat negative behavior, corruption, and group interests," said Nghia.

Regarding accountability, Nghia stressed that the heads of departments, sectors, and localities are responsible to the Government, and the Prime Minister, for the results of capital disbursement by their respective units and the results of disbursement of capital during the year.