Up to two-thirds of the projects that have been approved to get financing from government bond sales in the next four years will receive no penny following a directive recently issued by the Prime Minister.
Speaking at a meeting in Hanoi this week, Bui Quang Vinh, Minister of Planning and Investment, said the amount needed for investment in the next five years and sourced from government bond sales would be VND500 trillion.

However, the National Assembly only approved a VND225 trillion budget, which is 36 percent of what is needed, Vinh said.

“About two-thirds of the projects that are not allocated funds will have to be delayed,” he said. “This will shock many provinces, especially those in the uplands.”

According to Directive 1792 issued on October 15, the government will, in the next four years, prioritize earmarking money from government bond sales for the projects that have been completed and are scheduled to come on stream by the year-end, and those required for completion in 2012 and possibly in 2013.

“We must stick to the regulation. So no new project can get off the ground,” said Vinh. The minister also warned the projects that had been long delayed without making clear capital sources, saying those signing the decisions on these projects must take responsibility.

In Directive 1792, Prime Minister Nguyen Tan Dung said so many projects had been approved as a result of decentralization of decision-making, thus making it hard for the government to balance the state budget.

Project implementation has been protracted, project efficiency has been low and resources have been scattered, affecting the government drive to contain inflation, and stabilize the macro economy and financial security.

Local authorities and state agencies often receive complaints about the haphazard implementation of investment projects using funds from government bond sales in four major fields: transport, irrigation, education and healthcare.

According to a National Assembly resolution, only 40 projects financed by government bonds could start construction this year, but the actual number had jumped to 333 projects by October.

Earlier this year, the 12th NA Finance and Budget Committee reported the total investment for the projects funded by government bonds in the 2003-2010 period was over VND558.6 trillion, much higher than the original estimate of VND246.4 trillion.

SGTT/Tuoitre