Cumbersome procedures delay public investment

Dr. Nguyen Duc Kien, Head of Prime Minister Nguyen Xuan Phuc’s Economic Advisory Council, speaks about the key reasons that led to the slow disbursement of public funds because of the COVID-19 pandemic.

Cumbersome procedures delay public investment
Dr. Nguyen Duc Kien.

What are the causes leading to the slow disbursement of public funds?

A key problem is the cumbersome administrative procedures.

In reality, quite a few projects have completed the construction phase, yet they could not complete financial settlements. This has led to the problem of outstanding debt in capital construction, the construction of the Long Thanh International Air-port is an example. According to the project owner, a key problem is the lack of co-operation between the Ministry of Natural Resources and the Dong Nai People’s Committee in the course of developing the unit price in the land settlement for people whose land has been used for the airport construction.

In 2015, construction of the Long Thanh International Airport was launched. Under the project’s document, the Dong Nai People’s Committee is in charge of land settlement with a projected total investment cost of VND 18,000 billion (US$779 million). Due to the delay in the financial settlement, by the year 2017 the projected cost jumped to VND 23,000 billion (US$ 995 million). However, until now, the project remains on paper and no doubt, if the land settlement is not done, the cost will be much, much higher.

The revised Public Investment Law came into effect on January 1st 2020. Will it be able to solve the problem?

It is indisputable that public investment is always much more complicated than private investment. We have all agreed that our 2014 Law on Public Investment is very progressive compared to those from other countries. Yet, the authorities in many localities want the project to apply the old Public Investment Law.

 

According to the Law on Environment, environmental impact assessment (EIA) is an essential element that all projects must complete. But the question here is should the EIA be done in the pre-feasibility study (Pre FS) or in the FS report. If it is in the Pre FS, no doubt, the project owner cannot have all the information to write in the Pre FS report. Until now this problem remains unsettled.

What should we do to speed up the process of the disbursement of the public funds this year?

We only have more than four months left to disburse public funds for 2020. To my knowledge, public investment has contributed between 0.4-0.5 percent to the country’s GDP. It is projected some VND 700,000 billion (US$30.3 billion) must be disbursed. The disbursement of such a huge sum of money is very demanding.

We all know that this is a chronicle disease of our economy. In Vietnam, construction activities are often done in the dry season – from September to May. So right from February 2020, when the COVID 19 broke out, Prime Minister Nguyen Xuan Phuc came up with a projection that the public investment would become a driving force to the national economy to develop. Yet regrettably, the disbursement of our public investment has taken place very slowly. We are now living in a society ruled by law, it is the tasks of all ministries and localities to do their best to carry out their assignments. And if they face any difficulties they then should report to the Government and ask for help.  VNS/VGP

Measures needed to ensure on-schedule public investment disbursement: NA deputies

Measures needed to ensure on-schedule public investment disbursement: NA deputies

Vietnam News Agency speaks to National Assembly deputies on the sidelines of the plenary session on the Government’s target of disbursing 100 per cent of allocated public investment budget this year to boost 

Stepping towards the future of e-governing

Stepping towards the future of e-governing

The Vietnamese government is trying to build up an effective e-government to bring more benefits to both public and enterprises. 

 
 

Other News

.
Ministry takes action as market sets up new price levels
Ministry takes action as market sets up new price levels
BUSINESSicon  25/11/2021 

It was recorded on November 23 in Ho Chi Minh City that some products and many services set new price levels.

Seven commodities with export value hitting over US$10 billion each
Seven commodities with export value hitting over US$10 billion each
BUSINESSicon  25/11/2021 

Vietnam has boasted seven commodities with an export turnover exceeding US$10 billion each as of November 15 following the post-pandemic resumption of various businesses.

HCM City pilots price stabilised sale points to benefit factory workers
HCM City pilots price stabilised sale points to benefit factory workers
BUSINESSicon  25/11/2021 

The HCM City Department of Industry and Trade has begun a programme called ‘Mobile price-stabilisation sales points’ at export processing zones and industrial parks to ensure workers there can buy safe foods at fair prices.

Vietnam shows resiliency and sustainable growth amid pandemic: experts
Vietnam shows resiliency and sustainable growth amid pandemic: experts
BUSINESSicon  25/11/2021 

Vietnam’s economy is recovering with strong prospects for resiliency and sustainable growth, experts said on Tuesday at a conference in HCM City.

Vietnam Grand Sale 2021 to take place in December
Vietnam Grand Sale 2021 to take place in December
BUSINESSicon  25/11/2021 

The Vietnam Grand Sale 2021 will take place across the country from December 1, 2021 to January 1, 2022.

More people are pursuing IT careers as the digital economy takes off
More people are pursuing IT careers as the digital economy takes off
FEATUREicon  25/11/2021 

By September 2021, Vietnam had more than 1.3 million unemployed workers. Meanwhile, the local IT industry, with its growth momentum and large contribution to GDP, is hungry for human resources. 

Japan’s investment in Vietnam soars 90%
Japan’s investment in Vietnam soars 90%
BUSINESSicon  24/11/2021 

Japanese investors poured approximately US$3.4 billion into Vietnam from January to October 2021, soaring 90% compared with the same period last year.

42 wind power projects permitted to operate commercially
42 wind power projects permitted to operate commercially
BUSINESSicon  24/11/2021 

A total of 42 wind power plants featuring a total capacity of 2,131.3MW have been approved for commercial operation as of mid-November, according to data released by Electricity of Vietnam (EVN).

Vietnam-Malaysia-India container shipping route to be inaugurated
Vietnam-Malaysia-India container shipping route to be inaugurated
BUSINESSicon  24/11/2021 

The Vietnam Maritime Corporation (VIMC) announced on November 23 that it will inaugurate a container shipping route linking Vietnam, Malaysia and India on November 25.

Worrisome concerns about stock market bubble
Worrisome concerns about stock market bubble
BUSINESSicon  25/11/2021 

At the National Assembly last week, there were worrisome arguments about the structure of the budget revenue based on the stock market bubble and the real estate sector. 

Tax rescheduling proposed to support local automobile industry
Tax rescheduling proposed to support local automobile industry
BUSINESSicon  24/11/2021 

The Ministry of Finance (MoF) has proposed rescheduling excise tax payments for local automobile manufactures and assemblers.

Textile and garment sector could earn more if it made more local materials
Textile and garment sector could earn more if it made more local materials
BUSINESSicon  25/11/2021 

Fabric and input materials remain the weakness of Vietnam’s textile and apparel industry.

Big foreign companies to continue to increase investment in Vietnam
Big foreign companies to continue to increase investment in Vietnam
FEATUREicon  25/11/2021 

Most foreign invested enterprises have reopened their factories after lockdown and are optimistic about business performance for the last months of the year.

HoSE to develop other covered warrant products
HoSE to develop other covered warrant products
BUSINESSicon  24/11/2021 

The Ho Chi Minh Stock Exchange (HoSE) plans to develop products like covered warrants bought based on underlying assets including indices/ETF and put warrant, to further improve covered warrant products on the Vietnamese stock market.

Policy choices for Government to design economic master programme
Policy choices for Government to design economic master programme
BUSINESSicon  24/11/2021 

Vietnam’s Government is planning a master programme to gear up for a post-pandemic recovery, which this time requires sophisticated organisation and effective implementation to ensure long-term efficiency.

Concerns over 'cheap money' on stock market
Concerns over 'cheap money' on stock market
BUSINESSicon  25/11/2021 

Recently, the cash flow has poured massively into the stock, gold, and real estate markets. Investors call this phenomenon cheap money, but it also raises concerns over inflation for the economy.

Vietnam seeks new-generation ODA from Japan
Vietnam seeks new-generation ODA from Japan
BUSINESSicon  24/11/2021 

Prime Minister Pham Minh Chinh suggested Japan provide Vietnam with new-generation official development assistance with maximum incentives and the simplest procedures.

FTAs momentum for Vietnam's exports
FTAs momentum for Vietnam's exports
BUSINESSicon  24/11/2021 

Since joining the World Trade Organisation 15 years ago, Viet Nam has become a part of 17 FTAs, which are either under negotiation or underway. This has helped create a momentum for the country's exports.

VIETNAM BUSINESS NEWS NOVEMBER 24
VIETNAM BUSINESS NEWS NOVEMBER 24
BUSINESSicon  24/11/2021 

VN seeks Japanese investments in renewable energy

Textile - garment industry may flourish in 2022: insiders
Textile - garment industry may flourish in 2022: insiders
BUSINESSicon  24/11/2021 

The textile - garment industry is expected to thrive and earn 40 billion USD in exports next year, when the COVID-19 pandemic is forecast to ease in Vietnam and the world.

 
 
 
Leave your comment on an article

OR QUICK LOGIN