Hanoi identifies public investment central to economic recovery

Hanoi’s authorities identify the realization of the public investment target in 2022 as a key priority for socio-economic development, according to Director of the Hanoi’s Department of Planning and Investment Do Anh Tuan.

A corner of Hanoi. Photo: Pham Hung/ The Hanoi Times

In 2022, Hanoi allocated a total of over VND51 trillion (US$2.2 billion) in public investment, of which VND34 trillion ($1.46 billion) are for city-level projects and VND16 trillion ($688 million) for district-level ones.

An estimate of VND10.2 trillion ($443.2 million) would be assigned to rural and urban districts for developing their respective infrastructure projects, including the construction of new schools, upgrading healthcare facilities, and preserving historical sites, which reflects the city’s attention to supporting the growth at grass-roots levels.

As of the end of the first quarter, the disbursement of public funds remained at only 8% of the year’s plan but would reach 35% in the six months, representing an increase of 73.1% year-on-year.

Given the target of fully disbursing public investment funds in 2022, the local authorities have set up six task forces specialized in speeding up the process at the district and city levels.

According to Tuan, among the key measures, Hanoi has assigned clear responsibilities for contractors and local units and departments in accelerating public projects.

The municipal People’s Committee also issued a decision on the supervision of the efficiency of public investment projects in Hanoi, along with flexible administrative procedures for different investment phases, from project preparation to resettlement and compensation for affected households.

The bidding process has also been conducted via an online platform with transparency and publicity, to ensure that capable contractors are selected for the right projects.

“The main goal is for Hanoi to achieve the highest possible disbursement rate during the last six months of 2022, with the city's continual focus on addressing concerns of districts and wards in public investment,” Tuan said.

In addition, the city is stepping up site clearance and solving issues related to land and resources management, while moving funds from projects of slow disbursement rate to those of higher pace.

“Failure in meeting the targets of public investment would result in disciplinary measures against individuals and collectives involved in the process,” Tuan said.

For the 2021-2025 period, the city sets to earmark VND650 trillion ($28.4 billion) for the public investment plan.

The priority order for investment would be aligned with the vision for the development of the transport sector and socio-economic infrastructure, namely the ring road No.2.5, ring road 3, ring-road 3.5, ring road 4; major bridges crossing the river (Vinh Tuy bridge Phase 2, Thuong Cat bridge); inter-provincial roads (national road 6, upgrading national road 32, national road 1A, 21B); and urban railway projects.