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Apr 09, 2020 / 11:36

Hanoi Party chief considers public investment second priority after Covid-19 fight

Accelerating public investment is one of Hanoi’s key economic solutions this year which would help the city to achieve its objectives, said Hanoi Party chief Vuong Dinh Hue.

In addition to the fight against the Covid-19 pandemic, Hanoi considers public investment the second top priority to ensure economic growth, according to Secretary of Hanoi Party Committee Vuong Dinh Hue.

  Hanoi Party chief Vuong Dinh Hue at the meeting. Source: Thanh Hai.

“Accelerating public investment is one of Hanoi’s key economic solutions this year and would help the city achieve its objectives of the ongoing [five-year] period,” Hue said at a meeting on April 8.

According to Hue, public investment does not depend on global supply chain, but the joint effort of relevant parties involved.

The growing impacts of the Covid-19 pandemic are severely affecting socio-economic conditions in Hanoi, damaging economic growth drivers such as trade and production, Hue added.

A report from Hanoi’s Department of Planning and Investment showed that the city’s public disbursement target remains unchanged at VND37 trillion (US$1.56 billion) in spite of potential losses to state budget revenue on the Covid-19 pandemic.

Hue said a full disbursement of the target amount would contribute positively to the city’s economic expansion in the second quarter.

In the first three months of 2020, the disbursement rate reached 9.8%, higher than the 7.2% rate recorded in the same period last year, but is still lower than expected.

Nguyen Quoc Hung, vice chairman of the Hanoi People’s Committee, said the major issue is slow progress in site clearance as well as the lack of responsibilities from local authorities in resolving investment procedures.

Chairman of the Hanoi People’s Committee Nguyen Duc Chung said more urgent measures are needed to address bottlenecks in public disbursement.

Among them, Chung said Hanoi would allocate funds from projects that suffer delays in disbursement to those implemented at a faster pace.

Chung suggested the central government to allow Hanoi to adopt a special mechanism in simplifying site clearance procedures similar to the one of Ho Chi Minh City, while the city is seeking authorization for direct contract for projects in a time of crisis.

Hanoi's Party chief Hue suggested that Hanoi should set up a tasks force with an aim of speeding up disbursement progress, adding each process must be closely related with individual’s responsibility.