Vietnam races to meet public investment disbursement target
With over three months left in 2024, ministries, sectors, and localities are under growing pressure to meet the 95% public investment disbursement goal outlined in Government Resolution No. 01/NQ-CP, dated January 5, 2024. Achieving this target presents a significant challenge, requiring extraordinary efforts and innovative solutions.
As of September 30, the disbursement rate of public investment from the state budget stood at only 42.96% of the plan, equivalent to 47.29% of the target assigned by the Prime Minister. (Photo: Vietnam+)
Hanoi (VNA) - With over three month💟s left in 2024, ministries, sectors, and localities are under growing pressure to meet the 95% public investment disbursement goal outlined in Government Resolutiღon No. 01/NQ-CP, dated January 5, 2024. Achieving this target presents a significant challenge, requiring extraordinary efforts and innovative solutions.
The Ministry of Finance reported that as of September 30, public investment disbursement from the state budget had reached only 42.96% of the planned target, equivalent to 47.29% of the Prime Minister’s assigned goal. This is significantly lower compared to the same period in 2023, which achieved 47.75% of the plan and 51.38% of the assigned target.
The delays in public investment disbursement stem from both objective and subjective factors.
Land clearance remains the biggest obstacle, directly affecting project timelines.
Nguyen Thi Minh Thao, head of the Business Environment and Competitiveness Research Department at the Central Institute for Economic Management, pointed to prolonged project preparation, particularly delays in land clearance, as a key issue. Some local authorities' lack of determination has worsened these delays.
Weak project management in certain localities, combined with insufficient experience and a lack of skilled human resources, has resulted in inefficiencies. Poor oversight and accountability among officials have further exacerbated the situation.
Super Typhoon Yagi affects 20 provinces in northern and central Vietnam, with local authorities still working on recovery efforts. (Photo: Vietnam+)
Severe weather and natural disasters have significantly disrupted the progress of numerous projects, particularly in construction and transportation. Extreme events such as typhoons, floods, and landslides in northern provinces have caused major delays. Many projects had to be temporarily suspended to address the aftermath, including the widespread impact of Super Typhoon Yagi on 20 northern and central provinces.
Material shortages, particularly construction materials like sand, have been a major bottleneck, according to Nguyen Ba Hung, Chief Economist for Vietnam at the Asian Development Bank (ADB).
Experts agree that meeting the 95% target will require comprehensive solutions and coordinated efforts at all levels of government.
On October 7, during the September 2024 regular government meeting with 63 localities, Minister of Planning and Investment Nguyen Chi Dung presented key recommendations. He urged major economic hubs like Hanoi and Ho Chi Minh City to prioritize growth, stimulate business activities, and expedite public investment disbursement.
The government also directed 31 ministries and agencies, along with 23 localities with below-average disbursement rates, to intensify their efforts to utilize public investment capital effectively.
Minister of Planning and Investment Nguyen Chi Dung. (Photo: Vietnam+)
Minister Dung proposed that the Ministry of Labor, Invalids, and Social Affairs, and the Ministry of Agriculture and Rural Development finalize plans for the 2025 public investment under national target programs. These plans are to be submitted to the Ministry of Planning and Investment for timely reporting to the government and presentation at the 8th session of the National Assembly./.
The Ministry of Transport plans to disburse 75.824 trillion VND (3.03 billion USD) or 98.5% of the allocated public investment to the ministry this year, according to the Department of Planning and Investment's report.
The Ministry of Transport has made disbursement a top priority, swiftly tackling bottlenecks with on-site task forces. By mid-year, the Ministry reported a 42% disbursement rate, solidifying its status as a leading performer nationwide.
Prime Minister Pham Minh Chinh on October 8 signed an official dispatch, urging relevant authorities to accelerate the disbursement of public investment in the remaining months of this year.
With a relatively large amount of public investment allocated for the 2021-2025 period for key national transport projects, the Ministry of Transport wants to disburse the maximum amount of the assigned capital by the Government.
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