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Mar 16, 2023 / 15:11

Vietnamese Gov’t sets up task force to speed up public investment

The Prime Minister has requested that at least 95% of 2003's public investment capital be disbursed.

The Government has set up five interdisciplinary working groups involving ministries, central agencies and local authorities to remove obstacles and accelerate the distribution of public investment funds by 2023.

 The Cat Linh - Ha Dong urban railway in Hanoi. Photo: Hai Linh

Prime Minister Pham Minh Chinh signed a directive on March 14 establishing five task forces to be led by Deputy Prime Ministers Le Minh Khai, Tran Hong Ha, and Tran Luu Quang, as well as Finance Minister Ho Duc Phuc and Minister of Planning and Investment Nguyen Chi Dung.

According to the directive, the task forces will investigate and remove obstacles to spending public investment funds in ministries, departments, and central and local agencies that have disbursement rates below the national average for this year.

They will analyze the causes of the obstacles encountered in the execution of public investment projects, especially those that use ODA and concessional loans from foreign donors in agencies under their supervision.

In the course of the inspections, the working groups will evaluate the effectiveness in the formulation and allocation of public investment plans charged to the State Budget for 2023 while examining the responsibilities of the heads of ministries, agencies, provinces, and cities regarding its performance in the disbursement of public funds.

Based on their findings, the five working groups will recommend solutions and report back to the Prime Minister to speed up the disbursement of public investment funds.

According to a report by the Ministry of Finance, the public investment capital outlay rate in the first two months of this year amounted to more than VND49.2 trillion ($2.08 billion), equivalent to more than 6,5% of the allocated capital plan. However, this figure represents a decrease of more than 2% compared to the same period last year and is 0.4% below the target set by the Prime Minister.

Provinces with disbursement rates above 10% are Dien Bien (23.44%), Tien Giang (21.04%), and Lam Dong (20.31%).

Over 90% of central agencies and ministries and 30% of localities have disbursement rates below 5%, and 44 central agencies and ministries have yet to disburse their capital plans. In addition, 26 central agencies and ministries and 50 localities have not yet allocated all of their public investment capital for the year.

This year's total public investment capital is more than VND711 trillion ($30.16 billion). The Prime Minister calls for at least 95% of this amount to be disbursed, or more than VND676 trillion ($28.7 billion).

Hanoi improves public investment performance

The government has allocated VND47 trillion ($2 billion) in public investment capital to Hanoi for 2023. As of March 2023, the city has disbursed about VND3.9 trillion ($165.4 million), accounting for 8% of the planned disbursement for the year, according to a report from the municipal Statistics Department.

There are 238 public investment projects underway in Hanoi in 2023, consisting of 219 transitional projects and 19 new projects. Most of these projects, accounting for 53.1% of the capital plan, are focused on the transport sector, with 96 projects. Key projects and works in the city are progressing at an urgent pace and on track to be completed on schedule, including Ring Road 4-Capital Region and Vinh Tuy Bridge Phase 2.

The districts and areas through which Ring Road No. 4 passes are actively participating in the project, with the aim of handing over at least 70% of the land to start construction in June 2023, with site clearance expected to be completed by December 2023.

In addition, the city is prioritizing investment in the construction and renovation of public schools, the improvement of the healthcare system, and the restoration and enhancement of cultural and historical monuments. The city budget is expected to invest more than VND49.2 trillion ($2.08 billion) in these efforts from 2022-2025 and beyond.

To accelerate the disbursement of public investment capital in 2023, the Hanoi People's Committee has released a plan to address shortcomings in the disbursement of the city's public investment capital.

This plan requires departments, agencies, localities, and investors to create specific spending plans and take full responsibility for the spending results of their units. Quarterly meetings will be held on essential construction across the city, and monthly meetings will be organized with each industry to quickly resolve any obstacles and problems that arise during the implementation process.

Hanoi is expected to transfer capital from projects that need to be faster in investment procedures and disbursement to projects faster.