Public investment: thousands of projects cut, but total capital up by quadrillion VND

The total public investment capital has increased sharply in the 2021-2025 period compared with 2016-2020, but the number of projects has fallen significantly.

Public investment: thousands of projects cut, but total capital up by quadrillion VND

The Ministry of Public Investment's (MPI) report to the Prime Minister on medium-term public investment in 2016-2020 and predictions for 2021-2025 showed that the total investment capital of the state in the next period is VND2.75 quadrillion, an increase of 37.5 percent over the previous period (the amount approved by NA in 2016-2020 was VND2 quadrillion).

MPI is determined to maximize the mobilization of all resources in the economy to reach the state’s investment of VND2.75 quadrillion.

The total number of projects to be allocated capital for the period is 6,447, a 50 percent reduction from the 2016-2020 period. This includes 3,304 new projects, or 78.5 percent of that in the previous period.

The average capital of each project is VND154 billion, a two-fold increase compared with the VND88 billion in 2016-2020.

As such, the number of new projects is on the decrease.

However, when supervising public investment capital expenditure plans, MPI found that some ministries, localities and agencies do not strictly observe the regulations and principles on capital allocation. They start projects while not ensuring the capital arrangement for transitional projects, and approve projects that exceed the allocated capital.

The problem needs to be fixed, and the rampant, fragmented investment needs to be stopped so that unfinished projects can be completed.

Only 7,354 projects were completed in the 2016-2020 period, or 66.2 percent of the total projects in the medium-term plan.

According to MPI, a series of large transport projects will be developed with public capital in the next five years.

The Government will spend VND97.9 trillion on 74 key inter-region projects, and arrange VND8.1 trillion to complete 10 projects belonging to the coastal route from Quang Ninh to Nghe An.

Regarding the criteria for capital allocation in 2021-2025, MPI said the allocation will follow the laws on Public Investment and State Budget, and National Assembly and National Assembly Standing Committee’s resolutions and Government’s decisions.

Public investment capital will be allocated to key industries and sectors, large projects and important projects at the national level that connect regions and create new development space, promoting the growth areas of Hanoi, HCM City and key economic zones.

MPI estimated that in 2020 every one percent in increase of public investment disbursement led to a 0.06 percent GDP growth rate over the previous year. As such, increased public investment capital in the next five years is expected to give a push to GDP growth.

The halving in number of projects and the twofold increase in capital of each project shows that public investment has become less fragmented.

 

Disbursement

MPI estimated that in 2020 every one percent in increase of public investment disbursement led to a 0.06 percent GDP growth rate over the previous year. As such, increased public investment capital in the next five years is expected to give a push to GDP growth.

Prime Minister Pham Minh Chinh on April 15, during his first cabinet meeting ordered to boost public investment disbursement as one of the key solutions to stimulate national economic growth.

MPI on April 20 sent a document to ministries, agencies, and localities asking them to report barriers involving disbursement of state budget capital.

Speeding up disbursement is one of the biggest issues. Slow disbursement was seen in 2016-2019, especially in 2018 and 2019 with disbursement rates of 71.69 and 78.68 percent, respectively.

The Government then had to propose to the National Assembly an unprecedented solution to speed up disbursement – allowing the Government to adjust the investment plan with the central budget capital among ministries, central agencies and localities.

Four Government resolutions were released, and six conferences and seven government working delegations were organized in an effort to speed up disbursement.

Thanks to a series of drastic measures, the disbursement in 2020 reached its highest ever rate.

The Ministry of Finance (MOF) has warned that the slow disbursement may come back. The disbursement rate by April 30, 2021 was only 16.66 percent.

The ministry reported that in the first four months of the year, five ministries and 10 localities had disbursement rates of over 20 percent of the plans. Localities with high disbursement rates included Thai Binh (76.74 percent), Ha Nam (50.57 percent), Hung Yen (43.21 percent), Thanh Hoa (42.39 percent) and Quang Ninh (39.62 percent).

Meanwhile, 41 out of 50 ministries and 26 out of 60 localities had disbursement rates of below 15 percent. Seventeen ministries have not made disbursements. 

Luong Bang

Vietnam to spend $124.5 billion on public investment over next five years

Vietnam to spend $124.5 billion on public investment over next five years

Vietnam plans to outlay 2.87 quadrillion VND (124.5 billion USD) on public investment in the 2021-2025 period, up 120 trillion VND compared to the previous estimate.

Disbursement of public investment at record since 2016, still misses Gov’t target

Disbursement of public investment at record since 2016, still misses Gov’t target

The disbursement of public investment was estimated at VND398 trillion as of the end of December, meeting 82.8 per cent of the Government’s plan – the highest rate in the 2016-20 period, according to the Ministry of Planning and Investment.  

 
 

Other News

.
Domestic violence during the pandemic
Domestic violence during the pandemic
FEATUREicon  01/11/2021 

According to the Center for Research and Scientific Application on Gender-Family-Women- Adolescents, during social distancing, violence against women and girls not only increased in the number of cases but also changed in some aspects.

High taxes and fees cause jump in petrol prices
High taxes and fees cause jump in petrol prices
FEATUREicon  02/11/2021 

Taxes and fees make up nearly 40 percent of the petrol price. The environmental protection tax is now at the ceiling level.

Hanoi’s proposal to collect fees from cars entering inner city raises concerns
Hanoi’s proposal to collect fees from cars entering inner city raises concerns
FEATUREicon  02/11/2021 

Hanoi is considering setting up 87 toll collection stations in an effort to restrict the number of cars entering the inner city.

PM Pham Minh Chinh's trip to Europe and Vietnam’s responsibility for global issues
PM Pham Minh Chinh's trip to Europe and Vietnam’s responsibility for global issues
FEATUREicon  01/11/2021 

Attendance at COP26 has been a good opportunity for Vietnam to express its views on climate change, and to affirm its determination to contribute responsibly to global efforts.

Vietnamese paintings at international auctions reach milestones
Vietnamese paintings at international auctions reach milestones
FEATUREicon  31/10/2021 

Vietnamese paintings, especially the artworks created by those who studied from the Indochina Fine Arts College, have attracted the attention of the world’s art collectors.

Will students return to school in November?
Will students return to school in November?
FEATUREicon  30/10/2021 

A vaccination campaign for children will be launched in November throughout the country.

Foreign travelers in doubt, though 7-day quarantine requirement has been removed
Foreign travelers in doubt, though 7-day quarantine requirement has been removed
FEATUREicon  30/10/2021 

From November 2021, foreign travelers to Phu Quoc, Khanh Hoa, Quang Nam, Da Nang and Quang Ninh, if testing negative for the coronavirus, will be able to take package tours and not be required to have a 7-day quarantine.

Drinking rainwater, sleeping in buses: the lives of bus drivers, attendants
Drinking rainwater, sleeping in buses: the lives of bus drivers, attendants
FEATUREicon  30/10/2021 

Becoming unemployed and running out of money, bus drivers and bus attendants have had to drink rainwater, and eat and sleep on buses, waiting for the day the bus station resumes operation.

Vietnam needs to consider giving booster shots, though many people are still waiting for second shot
Vietnam needs to consider giving booster shots, though many people are still waiting for second shot
FEATUREicon  01/11/2021 

It’s necessary to think about who should get a booster shot first.

Safe cocoons protect children orphaned by Covid-19
Safe cocoons protect children orphaned by Covid-19
FEATUREicon  29/10/2021 

Most of the 1,500 orphaned COVID-19 youngsters are living in families of freelance workers in HCM City. Without financial or spiritual assistance, the previously limited path to these children's future has become even more bleak. 

Opportunity to build a brand for Vietnam education
Opportunity to build a brand for Vietnam education
FEATUREicon  30/10/2021 

In 2016, Vietnam was the 8th destination but in 2019 the country ranked 4th out of 40 destinations for short-term courses and internships for Australian students in the Indo-Pacific, including regions in Asia, following China, India and Indonesia.

Vietnam auto industry: turning risk into opportunity
Vietnam auto industry: turning risk into opportunity
FEATUREicon  29/10/2021 

The Vietnam Automobile Manufacturers’ Association (VAMA) said the fourth outbreak of the Covid-19 epidemic that began in late April 2021 has forced many automobile manufacturers to reduce capacity or even suspend production.

Hundreds of millions of US dollars invested in Vietnam startups
Hundreds of millions of US dollars invested in Vietnam startups
FEATUREicon  29/10/2021 

Amid the Covid-19 pandemic, many startups in online education, health care and goods delivery have received huge capital from foreign funds.

Clean or cheap: seeking safe energy options for Vietnam
Clean or cheap: seeking safe energy options for Vietnam
FEATUREicon  28/10/2021 

“The international pressure to reduce coal-fired thermal power is huge,” said an expert involved in the compilation of the draft of national power development plan 8.

Parents, experts have different views about reopening schools
Parents, experts have different views about reopening schools
FEATUREicon  29/10/2021 

Students in Hanoi may be able to return to school as the city has been listed as a green zone. However, no final decision has been released.

Petrol price hike puts pressure on consumers, threatens inflation
Petrol price hike puts pressure on consumers, threatens inflation
FEATUREicon  28/10/2021 

The prices of goods and services have begun escalating following a shocking hike in petrol price, reaching a 7-year high, announced by petroleum distributors on October 25.

Vietnamese need to be of the same mindset to overcome current challenges
Vietnamese need to be of the same mindset to overcome current challenges
FEATUREicon  29/10/2021 

The current challenges are unprecedented and Vietnamese people need to share the same mindset to overcome them, according to Nguyen Dinh Cung, an economist.

Should films be sanctioned for employing artists involved in scandals?
Should films be sanctioned for employing artists involved in scandals?
FEATUREicon  28/10/2021 

Filmmakers have reacted to a recent proposal by a NA Deputy to stop screening films or revoke licenses if artists in films commit ethical violations.

Petrol price at historic peak, Government urged to cut environmental protection tax
Petrol price at historic peak, Government urged to cut environmental protection tax
FEATUREicon  27/10/2021 

To force petrol prices down, the Government needs to cut the environmental protection tax rate, which is at the ceiling level.

Beer houses in HCM City ready to reopen
Beer houses in HCM City ready to reopen
FEATUREicon  27/10/2021 

The owners of many beer houses in HCM City are preparing for reopening but will serve soft drinks only as requested by state agencies.

 
 
 
Leave your comment on an article

OR QUICK LOGIN