A Hanoi railway project's cost has fallen by VND5.8trn (USD256m) after a review proved that estimates for many projects weren’t accurate.

Tran Hung Dao-Thuong Dinh metro line

Tran Hung Dao-Thuong Dinh metro line is a 5.9km underground railway. It was estimated that each km need an investment of nearly VND5.9trn (USD261m). However, after the first review demanded by Hanoi authorities, the management board recalculated and reduced the total investment from VND34.7trn to VND28.9trn.

The public was shocked by the inaccurate estimates. However, this is not the first time Hanoi authorities have saved huge amounts after conducting a review.

Chairman of Hanoi People's Committee Nguyen Duc Chung said last year that he had held six meetings and demanded reviews over lawn mowing cost alone and saved VND708bn (USD31m). Chung said the city’s landscaping looked even better after cost-cutting.

The State Audit Office of Vietnam and the Government Inspectorate said that they helped save up to tens of trillions of VND every year. Trillions were saved after many transport projects such as the Highway 1, were reviewed. About 100 years of charging were reduced after the State Audit Office of Vietnam worked at 27 build, operate and transfer toll booths.

The huge savings indicate the potential wastage and corruption in the system.

Secondly, review and audit tasks were more likely to be far more effective if held in the early stages. It would obviously be more difficult and complicated if the money has already been paid and leaders and investors already retired.

The VND4.5bn project to paint the tree trunks white was a butt of public disgust. Many people also raised concerns after some of Hanoi’s inner city streets paved with stone have been seriously deteriorated after just a year.

Vietnam is spending huge amounts on projects or technology upgrades at all levels of state agencies. The poor performance of public investments and high public debts has been blamed on the lack of scrutiny.

Those who approve or use state funds must be held accountable and strictly punished. If no punishment is announced for the Tran Hung Dao-Thuong Dinh metro line project, the situation will not be improved.

dtinews