Disbursement

Due to travel restrictions, disbursement of FDI projects in Vietnam totaled US$6.7 billion in the first five months of 2020, down 8.2% year-on-year.

This difficult period is an opportunity for the city to streamline the organization and lay off irresponsible staff, said Secretary of the Hanoi Party Committee Vuong Dinh Hue.

Amid a slowdown in private investments and consumption, expert suggested public spending is essential to spur economic growth and ensure decent living standards for the people.

FDI commitments in the January – March period totaled US$8.55 billion, down 20.9% year-on-year.

The improvement in disbursement rate in the first two months of 2020 was partly thanks to the effectiveness of the revised Public Investment Law since early 2020.

A draft decree on ODA is expected to address pending issues and obstacles existed in the current regulations.

A growing role of the private sector in the economy would help Vietnam overcome challenges and quickly adapt to international practices, said experts.

On the back of the estimated GRDP growth rate of 7.46% in 2019, a four-year high, Hanoi targets the GRDP in 2020 to grow at least 7.5% onwards.