Public investment: Lever for Hanoi’s economic development

Hanoi has identified public investment as a key tool to drive economic growth, which has resulted in a strong performance in state fund disbursement in 2023, Vice Director of the Hanoi Department of Planning and Investment Le Trung Hieu told a press briefing on January 19.

Overview of the city's press briefing. Photo: The Hanoi Times

As of January 31, 2024, Hanoi would have disbursed VND52.5 trillion ($2.13 billion) in public funds, or 91.6% of last year’s target and 111.8% of the Prime Minister’s.

In 2024, Hanoi's public investment plan is set at VND81 trillion ($3.3 billion), 1.4 times higher than the 2023 plan, Hieu noted.

To achieve this goal, Hanoi will continue to focus on closely supervising its public investment plan.

“This includes placing great emphasis on expediting disbursement right from the beginning of the year, strengthening administrative discipline and rigor, and strictly implementing regular city-wide progress reviews on a quarterly and monthly basis. Simultaneously, efforts will be made to streamline the investment procedures for various projects,” Hieu said.

Furthermore, Hanoi is concentrating on directing and managing the acceleration of key projects during the 2021-2025 period,  especially large-scale and transitional projects, to ensure their timely completion and operationalization, he continued.

Districts and towns are encouraged to speed up the disbursement of city-supported budget projects and those allocated to districts, and towns from the city budget, and ensure appropriate alignment of the 2024 public investment plan with revenue sources to avoid construction backlogs, Hieu noted.

In 2023, Hanoi's GRDP growth was 1.24 times that of the national average, with budget revenue exceeding the estimate by 16.4% and accomplishing 18 out of 23 major economic and social indicators, including surpassing the target in five areas.

Addressing key social issues

In response to concerns about water shortages in Thanh Ha Urban Area, Deputy Director of the Hanoi Department of Construction Mac Dinh Minh clarified that water supply in this community falls under the responsibility of the project's investor, Cienco 5 Real Estate Development Joint Stock Company.

To address the water supply issue, Cienco 5 signed agreements with Thanh Ha Clean Water Joint Stock Company and Nam Ha Noi Clean Water Joint Stock Company to invest in the construction, operation, and management of a water supply system serving the entire Thanh Ha Urban Area.

In early October 2023, the Hanoi Department of Construction coordinated with local authorities to bring water from the Red River to supply the Thanh Ha Urban Area.

From November 2023 to date, the regulated water supply from the Red River has met the needs of residents in Thanh Ha Urban Area, with an average flow ranging from 3,500 to 5,500 cubic meters.

To enhance water supply to the central and southwestern areas of the city, including Thanh Tri and Ha Dong districts, on November 24, 2023, the Hanoi People's Committee authorized the Thang Long Water Company to build a partial pressure-boosting station on Road 70 (on the sidewalk at the beginning of the road connecting Hoa Binh Bridge to Nam Linh Dam New Urban Area, Tam Hiep Commune, Thanh Tri District). The project is expected to be completed in January 2024.

Concerning the current initiative to introduce sidewalk usage fees, Minh explained that in August 2023, the city took the initiative to form a drafting team responsible for formulating guidelines on the management, exploitation, and use of roadbeds and sidewalks throughout Hanoi. Comprising 36 members from 11 departments, branches, and affiliated units, the drafting team is actively engaged in finalizing the draft project.

The project outlines three principles: the roadbed and sidewalks are primarily for traffic purposes; the street sidewalks are for pedestrians, combined with the provision of urban technical infrastructure; temporary use of the roadbed and sidewalks must be approved by the competent authority, used for the intended purpose and within the permitted scope. The entire project is being drafted and will be subject to comments. After receiving feedback from departments and agencies, the drafting team will report back to the city with specific information about the project.