Budget funds of VND2,000 trillion ($89.6 billion) will be spent on public investment in the 2016-2020 period, under a resolution that received a majority of votes from National Assembly (NA) delegates on November 10.

VND1,120 trillion ($50.2 billion) will come from the State budget and VND880 trillion ($39.4 billion) from local government budgets, the resolution stated.

The VND1,120 trillion ($50.2 billion) from the State budget will include VND300 trillion ($13.5 billion) in foreign investment and VND820 trillion ($36.7 billion) in domestic capital.

VND260 trillion ($11.6 billion) will come from the issuance of government bonds in 2017-2020, including VND60 trillion ($2.7 billion) remaining from issuances in 2014-2016, while VND250 trillion ($11.2 billion) will come from divestments from State-owned enterprises.

Ten per cent of each capital source will be set aside to resolve problems as they arise when implementing the plan.

Lawmakers agreed to allocate VND72.82 trillion ($3.26 billion) to national target programs, with new-style rural areas to receive VND43.12 trillion ($1.93 billion) and sustainable poverty reduction programs VND29.7 trillion (1.33 billion). 

VND5 trillion ($224 million) of State budget funds will be used to build the Long Thanh International Airport in southern Dong Nai province and VND80 trillion ($3.58 billion) used in other key national projects, including the North South expressway project.

The NA will review and determine the capital for each and every key national project after receiving documents from the government, in accordance with the Law on Public Investment.

The government was asked to “fix” unfinished ODA projects while at the same time allocating them sufficient capital. Where there is a need to adjust the investment rate in projects approved earlier, provinces must contribute the additional capital.

Both ongoing and new foreign investment projects need to be calculated and balanced between borrowing demand and the ability to repay, the NA said.

The legislature also directed the government to speed up budget reform, cut its operating expenditure, minimize advance payments on mid-term public investment plans, and increase the mobilization of resources for infrastructure investment through public-private-partnerships (PPPs).

Capital will also be allocated for the Socioeconomic Development Plan for the 2011-2020 Period and the Socioeconomic Development Plan for the 2016-2020 Period and approved planning for the country, localities, and sectors.

The NA specified that capital will go to national target programs, national key projects, those in mountainous, border, island, ethnic minority, and disaster-prone areas, climate change response, fighting drought in the central highlands and central region, salt intrusion prevention in the Mekong Delta, and on settlements for those affected by the Formosa steel mill pollution incident in four central provinces last April.

VN Economic Times