Hanoi (VNA) - Vice Chairman of the National Assembly Phung Quoc Hien has advised caution in amendingthe Law on Public Investment, saying that adjustments are necessary but mustnot be made hastily, lest the legal system be disrupted.

During a session held on October 2 on the implementation of the publicinvestment law and public investment medium-term plan (2016-2020), he said issuing the law was a significant landmark, avoiding scattered andarbitrary public investment and helping define accountability in publicinvestment decisions.

Minister of Planning and Investment Nguyen Chi Dung, said this is the first lawon public investment directly concerned with the interests, rights andresponsibilities of ministries and other public sector groups as well as localgovernments so “difficulties in implementation are unavoidable.”

According to Dung, allowing disbursement time for public investment plans to beextended for extra years would cause investors to not try their best tocomplete projects within a year.

The implementation of the investment law has also highlighted a majorinconsistency with the environment law – while the latter demands a full andapproved environmental impact for investments to go ahead, the former onlyrequires a basic environmental impact assessment and environment protectionplan.

NA deputies also noted inconsistencies between the public investment law andthe State budget law, especially in terms of official development assistancedisbursement.

A report by the Ministry of Planning and Investment (MPI) showed the budget formedium term public investment as approved by the NA was 2 quadrillion VND (88million USD), four percent of which –  80trillion VND (3.52 billion USD) – was allocated for key national projects. 10trillion VND has been reserved for an anti-flooding project in HCM City.

[Cabinet blamed for pr💞oblematic budget estimating, allocation planning]

According to estimates, by the end of September, disbursement only reached awoeful 51 percent, similar to the same period last year.

The tardy disbursement was blamed on tighter and lengthier procedures forpublic investment. However, many deputies concerns that while public debt isworryingly high and interest rates still have to be paid; slow disbursementwould undermine the efficiency of capital.

The slow disbursement plagues even key projects like the anti-flood project inHCM City or the North-South expressway, with NA Vice Chairman Hien saying thisis the first time a five-year public investment plan has been implemented somissteps are natural. He also criticised the medium-term public investment asillogical and unpractical, while local governments have not followed publicinvestment regulations closely.

Deputy Ta Van Ha from Bac Lieu province called for clarity regarding whichagencies hold the main responsibility in managing public investment, citing thefact that in many cases, investment plans get approved at a central level, butonce deployed in localities, local governments issue another plan.

Hien shared this concern, saying that the onus of public investment is on theGovernment, while the MPI should assist the Government.-VNA