Hanoi (VNA) - Public investment disbursement has beenaccelerated since the opening days of the year as it continues to be seen as animportant driving force of economic growth this year, the Dau tu (VietnamInvestment Review) newspaper reported.

In a report to the Government in early February, Minister of Planningand Investment Nguyen Chi Dung said that an estimated 452.41 trillion VND (19.6billion USD) in investment capital was disbursed last year from the Statebudget, equivalent to 96.13 percent of the target set by the Prime Minister. 2019disbursement, meanwhile, was equal to just 73.7 percent and 76.75 percent ofthe figures targeted by the National Assembly and the Prime Minister.

The 2020 rate was the highest for many years, he said, describing it as the“sweet fruit” of breakthrough efforts by the Government, ministries, sectors,and localities to promote the disbursement of public funds.

Disbursed capital was about 15 trillion VND in January, or 3.25 percentof the 461.3 trillion VND planned for the year by the Prime Minister.

The disbursement pace was slower than expected but still much higherthan the 0.95 percent recorded in January last year, according to the Ministryof Planning and Investment (MPI).

It noted that, to accelerate disbursement, the allocation of Statebudget-sourced investment capital has been promoted since late 2020.

As a result, over 412 trillion VND of planned capital had been assigned asof the end of January, equivalent to 89 percent of the PM’s target, the MPIsaid.

While this is considered a positive figure, MPI is still concerned thatthe sum unallocated is relatively large, at more than 101 trillion VND.

It pointed out that the 2021 public investment plan has been carried outwhile the medium-term public investment plan for 2021-2025 has yet to beapproved.

Therefore, new projects with investment procedures completed afterDecember 31, 2020, will be assigned capital at a later date, after the newNational Assembly in the 15th tenure passes the 2021-2025 plan.

After the week-long Lunar New Year (Tet) holiday in mid-February, majorprojects, especially in the transport sector, have seen their progress andcapital disbursement hastened.

At a recent meeting, Prime Minister Nguyen Xuan Phuc repeated his requestfor drastic action from the outset, to avoid disbursement pressure in theyear-end period.

The newspaper cited Minister Dung as saying that it is necessary to preparemonthly and quarterly plans so as to disburse 90 percent of the sum planned for2021 by the fourth quarter.

Specific organisations and individuals would then be held responsible forthe implementation and disbursement progress of each project, he added.

The Government has also agreed on the establishment of a special workinggroup for addressing obstacles to investment, production, and businessprojects, which is also believed to help with public investment disbursementand, subsequently, economic growth this year./.