Vietnam Gov’t earmarks US$27 billion for public investment in 2024
Transport infrastructure projects remain a priority with an estimated fund of VND422 trillion (US$17.2 billion).
In 2024, Vietnam is set to allocate VND657 trillion ($26.8 billion) for public investment in 2024, with a focus on transportation infrastructure (at VND422 trillion or $17.2 billion). At least 95% of the funds are expected to be disbursed in a best-case scenario.
| Prime Minister Pham Minh Chinh at the meeting. Photos: Nhat Bac |
Prime Minister Pham Minh Chinh revealed the figures today at a Government meeting to discuss priority transport projects [February 16].
During the meeting, Chinh stated that the country aims to “push forward three growth engines, including investment [domestic, foreign, private investment, and social investment].”
He added that public investment plays a crucial role in leading and activating all social resources. Alongside boosting growth engines, focusing on the disbursement of public investment, and the utilization of transportation projects will reduce logistics costs for businesses, lower input costs, and enhance the competitiveness of products, enterprises, and the economy.
"Transportation projects also create new development space because roads open up new development opportunities, especially in industry, urban areas, and services," the Prime Minister said, emphasizing that the landmark decision in infrastructure development, especially in transportation, is wise, reasonable, and a decisive factor for both short-term and long-term development.
| Construction of the Ring road No.4 project in Hanoi. Photo: Pham Cong/The Hanoi Times |
The head of government stated that in recent years, investment in transportation infrastructure has been promoted, creating a momentum and trend not only at the central level but also at the local level. The period from 2021 to 2022 was a phase of initiation, preparation, and project approval, 2023 saw simultaneous implementation, and 2024 will be a year of accelerated implementation of key transportation projects, he noted.
While acknowledging the efforts of units to promote projects, Chinh also pointed out some delayed projects due to prolonged investment procedures, slow land clearance, and lack of proactive procurement of materials due to regulatory constraints.
Chinh requested greater efforts to address difficulties in utilizing ODA funds or using sea sand for highway construction.
During the meeting, representatives from the Ministry of Transport noted that most of the newly implemented projects have met or exceeded the set plans, with disbursement reaching high levels or surpassing requirements.
| Overview of the meeting. |
Nationwide, there are 34 major projects, and 86 nationally important component projects, focusing on transportation in 46 provinces and cities. These include five railway projects, and two airports, and the rest are road projects such as highways and ring roads around Hanoi, and Ho Chi Minh City.
The North-South Expressway project in the eastern part has completed nine out of 11 component projects in the 2017-2020 phase, and the My Thuan - Cantho project is on schedule, bringing the total length of expressways to 1,892 km, with 475 km completed in 2023 alone.
In the remaining two projects invested under BOT contracts, investors and contractors are working around the clock to complete them as directed by the Prime Minister.
Although the 12 component projects in the 2021-2025 phase have encountered various obstacles in land acquisition and construction materials in the first year of implementation, investors and contractors have made efforts to organize construction and closely follow the set schedules. The implementation of 5 high-speed East-West road projects and ring roads has been slow, except for some packages managed by Ho Chi Minh City and Long An (Ring road No.3), Hanoi (Ring road No.4), Ba Ria - Vung Tau (Bien Hoa - Vung Tau expressway), Dak Lak, and Khanh Hoa (Khanh Hoa - Buon Ma Thuot), which have met the plans.
The schedules of other high-speed projects such as Tuyen Quang - Ha Giang passing through Ha Giang Province, Cao Lanh - An Hieu, and Ben Luc - Long Thanh are being closely followed by investors and contractors to adhere to the set schedules.
The urban railway project from Nhon to Hanoi station and the Ben Thanh - Suoi Tien project are being reviewed and obstacles in contracts are being addressed by Hanoi and Ho Chi Minh City, with personnel training being conducted, fire prevention and extinguishing procedures completed, and efforts are being made for the Nhon - Hanoi Station section and the Ben Thanh - Suoi Tien project to be commissioned in July 2024.
The Airports Corporation of Vietnam (ACV) and the Vietnam Air Traffic Management Corporation (VATM) have been instructed to actively implement packages such as passenger terminals and flight management facilities in the Long Thanh International Airport project in accordance with the progress.
The T3 Tan Son Nhat terminal contract by ACV is being implemented on schedule, with disbursement reaching VND2.47 trillion ($100.8 million), or 23% of the total investment capital ($10.8 trillion or $440.7 million).
