Prime Minister Nguyen Xuan Phuc has urged localities nationwide to hasten the disbursement of more than VND633 trillion (nearly US$28 billion) of public investment this year.
A rendering of the proposed Long Thanh International Airport in the southern province of Dong Nai. — Photo courtesy of Airports Corporation of Vietnam
Strict penalties will be imposed on leaders of localities and sectors which postpone disbursement and investment will be transferred from localities and sectors with slow disbursement to others which disburse investment faster, he said.
At a teleconference between the Government and localities on Thursday, PM Phuc said labourers are experiencing a tough time with many having their wages cut or losing their jobs due to the COVID-19 pandemic.
Social and State investment remains low and disbursement is slower than the plan. This is one of the primary reasons behind the slow growth of the national economy.
According to the Ministry of Planning and Investment, in the first half of this year, three ministries, State agencies and nine localities had a disbursement rate of more than 50 per cent.
The disbursement rate of 33 ministries and State agencies, as well as three localities, was below 20 per cent.
Among national key projects, the project retrieving land, compensation and resettlement support for Long Thanh International Airport had a disbursement rate of only 10.1 per cent in the first half.
The southern Dong Nai Province’s authorities will struggle to complete land clearance, land transfer and disburse all of the State budget allocation to meet dealines for the airport, according to the Ministry of Planning and Investment.
At the meeting, localities with slow disbursement rates were named and shamed, including Quang Tri, Tra Vinh, Khanh Hoa, Hoa Binh, Can Tho, Ninh Thuan, Dong Nai and Thai Nguyen.
He asked mass media to publicise the list of localities and sectors with good and slow investment disbursement.
“Public investment is key to helping the country overcome difficulties. According to the General Statistics Office, 1 per cent of investment contributes to increasing GDP by 0.06 per cent,” he said.
The Government leader told localities and sectors to solve unsettled capital, debts and accelerate procedure settlement to speed up investment disbursement.
Bureaucracy affects the progress of investment disbursement, especially land clearance, he said, asking State inspection teams and chairpersons of local people’s committees to step up inspections on disbursement and address difficulties in policies and procedures.
Noting that Ninh Binh Province holds People’s Council meeting every month to hasten investment disbursement instead of once every six months like many other localities, PM Phuc requested localities and sectors to update disbursement once every two weeks.
The Ministry of Planning and Investment was assigned to compile and submit to the Government a list of projects that need to be prioritised for capital for investment transferring plans. VNS
If the huge capital for public investment can be brought into the economy, Vietnam would be able to save GDP growth.
National Assembly (NA) deputy Do Van Sinh, Permanent Member of NA Economic Committee, talks about the disbursement process for public investment projects this year.