VietNamNet Bridge – Minister of Transport Dinh La Thang has asked the National Assembly (NA) to allocate VND40 trillion (around $1.9 billion) from crude oil revenue in 2012, to invest in key transport works.
Thang put forward the proposal at the NA session on budget estimations for 2012. He said if the NA approved, the funding will be invested in significant transport projects, including the construction of Hanoi-HCM City highway and around 570 other projects.

Explaining this huge fund, Thang, former Chairman of the Vietnam Oil and Gas Group (PetroVietnam) said that the current price for crude oil, reported by PetroVietnam, is higher than the price used in the report on budget estimations for 2011 and 2012. As a result, the real revenue from crude oil will rise by VND40 trillion.

According to a national plan, around 600km of the Hanoi-HCM City highway will be completed by 2015. Minister Thang said that his ministry could only finalize the building of this over-2,000km highway by 2020 if it is supplied with sufficient capital.

Minister of Planning and Investment Bui Quang Vinh said that the Ministry of Transport is always in shortage of capital so many projects are implemented slowly.

Deputy Nguyen Ba Thanh from Da Nang also suggested early building of the Hanoi-HCM City Highway and hiring foreign prestigious firms to consult and supervise this project. Thanh doubted qualifications of local contractors.

Deputy Le Nam from Thanh Hoa also asked the NA to focus resources on building the Hanoi-HCM City highway in 2012. He said this work is the most important for the country, which must be finished before 2020.

State budget

During the discussion on the budget, most deputies focused on the efficiency of management of the State budget.

Deputy Danh Ut of Kien Giang Province said the management of State budget remained poor, resulting in high budget spending for public construction projects.

State spending on inefficient projects should be retrieved. The money should be spent on ensuring social welfare in provinces with economic difficulties.

Foreign-invested enterprises that do not transparently pay taxes should be reviewed while tax arrears should be conducted, said deputy Ut. He added that the State should concentrate on developing agricultural and rural areas as well as building infrastructure in poor and remote areas while avoiding rampant investment.

Deputy Ma Dien Cu of Quang Ngai Province said the State budget should be spent on key economic development zones.

Nguyen Cong Doan from Yen Bai Province proposed that the State pay more attention to the country's economic restructuring, including budget spending. The State budget should be spent on the north-western, central highlands and south-western provinces.

Doan added that the State needed to raise a reserve of 5 per cent of the total budget allocation for provinces with low budget collection and regularly suffering from natural calamities.

To protect the State budget collection raised from provinces, Deputy Nguyen Thanh Tam of Tay Ninh Province said the State should closely monitor tax collection at the provincial level. Those who violate the regulation of tax collection should be harshly punished.

Apart from the strict control of local tax collection, the Government also needs to manage tax collection from land leased in provinces. If tax collection is not strictly managed, it will result in great losses for the State budget, Tam said.

PV