Hanoi to step up efforts to facilitate public investment
The city is fully committed to maximizing disbursement results with the highest level of determination and effort.
Hanoi’s senior officials stressed the need to resolve bottlenecks in the disbursement of funds for public projects during a discussion session at the 20th Hanoi City Party Committee meeting on December 4.
| Hanoi - Bac Giang Expressway. Photo: Quang Vinh/The Hanoi Times |
At the meeting, the Secretary of the Long Bien District Party Committee and Chairman of the District People's Council Duong Hoai Nam stated that despite numerous challenges in 2024, the city has achieved positive results in economic and social development, as well as in social welfare.
Notably, the city has aggressively implemented and finalized mechanisms and policies to establish a new development framework for the capital, with the revised Capital Law passed by the National Assembly, which will take effect on January 1, 2025. Additionally, the Hanoi Capital Plan for 2021-2030, with a vision to 2050, and the General Adjustment Plan for Hanoi's Development until 2045, with a vision to 2065, have been finalized and submitted to the Prime Minister for review and approval.
Analyzing specific reasons why the city's public investment disbursement did not meet expectations, Nam pointed out difficulties in land clearance and the large investment plan for the year.
"During the implementation of land clearance projects, we frequently receive complaints and petitions from local residents regarding compensation rates for land clearance. This issue represents a significant bottleneck that requires the city's attention to resolve so that localities can expedite public investment disbursement," said Nam.
Echoing Nam, Secretary of the Nam Tu Liem District Party Committee Nguyen Quang Hieu highlighted problems with land clearance and compensation policy, particularly inconsistencies in land valuation for compensation in 2024, which hindered public consensus.
Hieu emphasized that alongside the determination of the city's entire political system and relevant units, decentralization and delegation in public investment projects are crucial for accelerating implementation.
Hai Ba Trung District Party Committee Secretary Nguyen Van Nam expressed concern that Hanoi's GRDP growth rate for 2024 is lower than the national average and called for a deeper investigation into the reasons beyond attributing it to the impact of the Covid-19 pandemic, as mentioned in the city report. He pointed out shortcomings in land management and utilization, with numerous "suspended" projects, including some fenced-off areas that have not been addressed.
For example, two plots of land at 418 Bach Mai Street were allocated to the Electrical and Telecommunication Engineering Company but are now being rented out for storage rather than for any type of business workshop or retail. He acknowledged land clearance challenges but also attributed delays in public investment disbursement to slow investment procedures and issues with project quality, resulting in multiple adjustments that consumed considerable time.
Nam also noted delays in investment preparation and insufficient decentralization of local investments.
Deputy Chairman of the Hanoi People's Committee Ha Minh Hai at a city’s meeting on December 4 said the planned public investment budget for 2024 is approximately $3.14 billion (1.64 times higher than the 2023 plan). As of November 30, 2024, the city has disbursed over $1.63 billion, reaching 52.4% of the plan. To accelerate public investment disbursement for 2024, the city’s People's Committee instructed relevant units in November 2024 to focus on key tasks through January 2025 with the highest level of determination and effort to achieve maximum disbursement results. |
Budget revenue exceeds yearly target
Leaders of several districts also reported positive outcomes in budget revenues, citing favorable land auctions. For example, Ba Vi District Party Committee Secretary Duong Cao Thanh announced that the district's budget revenue exceeded VND1 trillion ($39 million) for the first time, thanks to successful land auctions.
Regarding the matter, the Director of the Department of Finance Nguyen Xuan Luu stated that the 2024 budget has been flexibly managed. As of now, the city’s state budget revenue is projected to exceed 120% of the target, with all 30 districts and towns surpassing their tax and fee collection goals. A 20% increase in budget revenue is equivalent to approximately VND80 trillion ($315 million).
On the expenditure side, Luu noted that Hanoi has maintained a positive budget structure, with recurrent expenditures below 50% (the national average is around 70%) and capital expenditure at around 52%. The city has also allocated an 8% wage reform fund to ensure immediate budget distribution to agencies and localities once approved by the Municipal People's Council at the year-end session.
