Public investment pushed to the fore

Vietnam will continue pumping a great deal of money into public investment with a view to reaching the country’s economic growth goal for next year.

Public investment pushed to the fore
New capital sums will help complete critical infrastructure projects. Photo: Thanh Tung/VIR

The National Assembly (NA) has adopted a plan for boosting public investment for 2021 after setting a growth target of about 6 per cent. Accordingly, total capital from state coffers for next year will be VND477.3 trillion ($20.75 billion), up 1.4 per cent against the similar plan for this year. In which, money from the central budget will increase 0.9 per cent on-year, and money from the local coffers will expand 1.9 per cent on-year.

The VND477.3 trillion public investment capital will be earmarked for many projects. For example, VND16 trillion ($695.65 million) will be used for national target programmes, VND15.038 trillion ($653.82 million) for the project on constructing the North-South Expressway; VND4.66 trillion ($202.6 million) for the project on land compensation and resettlement for the Long Thanh International Airport; VND2.8 trillion ($121.74 million) for developing coastal roads; and 4.7 trillion ($204.34 million) for supporting localities in implementing some key new infrastructure projects.

According to the Ministry of Planning and Investment (MPI), in 2021, these new investment capital sums, in addition to capital attracted from private investors, will help to complete the construction of the eastern cluster of the North-South Expressway project, many national coastal roads, connection road lines, airports, and seaports.

MPI Deputy Minister Tran Quoc Phuong told VIR that amid existing massive difficulties caused by the COVID-19 pandemic, accelerating public investment “will be among the best solutions to fuel the economy and enable it to hit the economic growth rate of about 6 per cent this year.”

It will take years to complete procedures for a project under the public-private partnership (PPP) format, so for the time being public investment is a feasible solution, Phuong added.

In June, the National Assembly Standing Committee decided that three out of eight expressway projects, which are parts of the eastern cluster of the North-South Expressway project, would be funded by the state budget. These three projects, in which construction has been commenced, include Mai Son-National Highway No.45 (63.4km), Vinh Hao-Phan Thiet (106km), and Phan Thiet-Dau Giay (98km). As of October 31, their disbursed money was VND2.52 trillion ($109.56 million), reaching 75.03 per cent of the assigned VND3.356 trillion ($145.9 million) for 2020.

According to the committee, these three projects are of great importance and urgency for investment due to rising demand for traffic. Earlier, all of them had been planned for investment under the PPP format.

 

“The new investment capital from the state will contribute to reducing travelling time for transporting passengers and goods, saving fuel, paring down transport costs, and improving the economy’s competitiveness,” stated a report on public investment for the 2021-2025 period recently submitted to the NA. “This will also contribute to expanding spaces for development, creating new land areas for production and business, and enhancing the effectiveness of maritime resources and maritime economic development.”

According to the Ministry of Finance, in the entire 2020, about VND633 trillion ($27.5 billion) worth of public investment must be disbursed. This sum includes VND470.6 trillion ($20.46 billion) assigned for this year and VND162.4 trillion ($7 billion) transferred to 2020 from 2019.

From January to late October, VND321.53 trillion ($13.97 billion) or 68.3 per cent of the total public investment for 2020 was disbursed, higher than the 54.7 per cent in the same period last year, with 13 ministries and government agencies and 21 localities having a disbursement rate of over 70 per cent.

“Efforts are to be made to push up the construction rate of key transport projects such as the eastern cluster of the North-South Expressway, railways, and roads,” stated MPI Minister Nguyen Chi Dung. “We will have to complete and put into operation urban metro lines in Hanoi and Ho Chi Minh City. More investment will be placed in upgrading the Tan Son Nhat, Noi Bai, and Danang international airports, and constructing the first phase of the Long Thanh International Airport. We will also upgrade roads and construct and operate smart traffic management centres.”  VIR

Nguyen Thanh

Public investment, exports to ensure Vietnam 2020 GDP growth at 2.5%: Expert

Public investment, exports to ensure Vietnam 2020 GDP growth at 2.5%: Expert

Domestic production and exports are key driving forces for Vietnam’s economy this year, state an expert.

Raising growth via public investment

Raising growth via public investment

The government has proposed a strong 5-year increase in public investment to achieve high economic growth, with more opportunities for private investors to join.

 
 

Other News

.
Wind and solar power: race to exploit endless resources
Wind and solar power: race to exploit endless resources
FEATUREicon  08/10/2021 

In the Draft Power Development Planning 8, one of the power source scenarios with the highest scores is the development of power sources associated with renewable energy under Resolution 55 of the Politburo.

Military Bank named among ‘Best Companies to Work for in Asia 2021’
Military Bank named among ‘Best Companies to Work for in Asia 2021’
BUSINESSicon  08/10/2021 

The Military Commercial Joint Stock Bank (MB) on October 8 received the "Best Companies to Work for in Asia 2021" award by HR Asia, a leading HR magazine in Asia.

Vietnam’s steel group in the world’s top 15 for market capitalization
Vietnam’s steel group in the world’s top 15 for market capitalization
BUSINESSicon  08/10/2021 

Hoa Phat Stee Group of billionaire Tran Dinh Long has entered the world's top 15 corporations in terms of market capitalization.

Apparel industry struggles to reach export target this year due to COVID-19
Apparel industry struggles to reach export target this year due to COVID-19
BUSINESSicon  08/10/2021 

The domestic textile and garment industry is likely to not reach its goals in production and business due to the strong impacts of the COVID-19 pandemic, according to the Vietnam Textile and Apparel Association (Vitas).

Economic momentum in 2021 takes a knock
Economic momentum in 2021 takes a knock
BUSINESSicon  08/10/2021 

Prolonged social distancing in many localities have led to lower-than-expected economic growth for the first nine months, but with the accelerated vaccine rollout, the economy is expected to gain growth momentum soon.

Proposal to resume flights from/to major cities from October 10
Proposal to resume flights from/to major cities from October 10
BUSINESSicon  08/10/2021 

The Vietnam Aviation Business Association (VABA) has proposed centrally-run provinces and cities agree on a plan to resume regular commercial passenger flights, especially those from/to Hanoi, Da Nang and HCM City from October 10.

Pig farmers incur losses, pork shortage for Tet holiday possible
Pig farmers incur losses, pork shortage for Tet holiday possible
BUSINESSicon  08/10/2021 

With the current low prices, farmers will take a loss of VND2 million when selling a pig. If the prices keep decreasing, farmers will give up farming, resulting in pork shortage for Tet (lunar New Year) sale season.

Nike Group to expand investment in Binh Duong
Nike Group to expand investment in Binh Duong
BUSINESSicon  07/10/2021 

Sportswear giant Nike Group has affirmed that it will continue to expand production in Binh Duong province, said Nguyen Thanh Toan, Director of the Department of Industry and Trade of the southern industrial hub.

Smartphone market narrows, IoT opens up
Smartphone market narrows, IoT opens up
FEATUREicon  08/10/2021 

When VinSmart announced the withdrawal from the smartphone market, Nguyen Tu Quang, CEO of BKAV Corporation, the manufacturer of BPhone, showed his regret.

VIETNAM BUSINESS NEWS OCTOBER 7
VIETNAM BUSINESS NEWS OCTOBER 7
BUSINESSicon  07/10/2021 

First three wind-power plants put into use in Soc Trang province

USAID funds US$2 million to improve Vietnam’s innovation workforce
USAID funds US$2 million to improve Vietnam’s innovation workforce
BUSINESSicon  07/10/2021 

The two-year USAID-funded project is expected to support the nation’s strategy on the fourth industrial revolution to advance continued economic transformation./.

Vietnamese enterprises need cash to revive
Vietnamese enterprises need cash to revive
FEATUREicon  07/10/2021 

Nguyen Quoc Ky, Chairman of Vietravel, a big tourist company in Vietnam, said that due to the impact of the 4th wave of Covid-19 epidemic, the entire tourism industry of Vietnam has been closed since May 2021.

Business associations unhappy with weekly tests for vaccinated, recovered workers
Business associations unhappy with weekly tests for vaccinated, recovered workers
BUSINESSicon  07/10/2021 

Several business associations in HCM City have called for scrapping a requirement that workers commuting to the city from elsewhere need to undergo a weekly test for COVID-19 regardless of their vaccination or recovery status.

Govt' to consider zero-interest loans for all airlines
Govt' to consider zero-interest loans for all airlines
BUSINESSicon  07/10/2021 

The Vietnam Aviation Business Association asked the Government to consider a proposal to slash 30 per cent off the airlines' income tax for 2020 and the first half of 2021.

Vietnamese businesses to overcome challenges
Vietnamese businesses to overcome challenges
FEATUREicon  07/10/2021 

Ho Chi Minh City and 18 southern provinces are gradually resuming business and production activities after a long time of lockdown. 

90,000 businesses get stuck, others need VND100 trillion
90,000 businesses get stuck, others need VND100 trillion
FEATUREicon  08/10/2021 

Businesses need loans without collateral and a simple procedure which allows them to access bank loans soon or they will die before they get the money.

Incurring big losses, café chains shut down
Incurring big losses, café chains shut down
FEATUREicon  07/10/2021 

The Covid-19 pandemic, with changes in consumers’ habits and requirement on a minimum distance between customers, has dealt a strong blow to the (food and beverage) F&B industry.

Vietnam’s power development plan to boost LNG sector
Vietnam’s power development plan to boost LNG sector
BUSINESSicon  06/10/2021 

The outlook for Vietnam’s emerging liquefied natural gas (LNG) sector remains promising as the country’s need for the product is large to serve its power development plan, according to Fitch Solutions.

Serious worker shortage looms as factories resume operations after prolonged lockdown
Serious worker shortage looms as factories resume operations after prolonged lockdown
BUSINESSicon  06/10/2021 

Companies in HCM City and other industrial hubs like the neighbouring provinces of Binh Duong and Dong Nai are struggling with a labour shortage after the pandemic.

Vietnamese products at risk of trade violation investigations
Vietnamese products at risk of trade violation investigations
BUSINESSicon  06/10/2021 

The Trade Remedies Authority of Vietnam (TRAV) have warned that Vietnamese products are at risking of falling foul of anti-dumping and trade defence investigations. 

 
 
 
Leave your comment on an article

OR QUICK LOGIN