Update news public investment
The disbursement of public investment projects in H1 reached VND192, 200 billion (US$8.2 billion), up 10.1 percent compared to the same period last year. However, this rate is not as expected, Minister of Planning and Investment Nguyen Chi Dung said.
The Resolution 54 on a special mechanism for HCM City expires at the end of 2022, but there has been no draft of a new resolution.
Prime Minister Pham Minh Chinh earlier this month signed a decision on setting up six task forces headed by four Deputy Prime Ministers and two Ministers.
The Vietnamese Government will implement solutions to ensure the efficient management and use of the funds.
It is estimated that until May 31, Vietnam disbursed only 22.37 percent of its public investment budget.
The Ministry of Finance (MOF) has submitted a statement to the Prime Minister about the public debt management program for 2022-2024, and the plan to borrow and pay public debts in 2022.
In 2022, the driving force for Vietnam’s economic growth will still be import and export, attracting foreign direct investment (FDI) and public investment. Among these factors, public investment is the most important.
With the economy gradually bouncing back, Vietnam will continue speeding up the disbursement of public investment this year, with a focus placed on infrastructure development in order to spur on economic growth this year and beyond.
Construction on a section of the Ring Road No. 2 project in HCMC has been delayed for two years, leaving the city with an interest sum of VND232 billion during the period, Lao Dong reported.
The Ministry of Transport plans to start 67 new projects in the medium-term public investment plan for the 2021-2025 period.
According to the Economist Intelligence Unit (EIU), the world economy could lose trillions of dollars due to the prolonged pandemic, with developing economies suffering the most damage.
Prime Minister Pham Minh Chinh has decided to establish six working groups to accelerate the disbursement of public investment capital in 2021 at ministries, agencies and localities.
Financing public investment to generate future growth and to speed up economic recovery post-COVID-19 remained Vietnam's most important challenge in the near future, said economists and policymakers.
Nine ministries have told the Ministry of Finance they want to return a total of VND 8,054 billion of foreign loans that they could not disburse.
Prime Minister Pham Minh Chinh convened a national teleconference on Tuesday to seek ways to disburse nearly VND 250 trillion (over US$11 billion) in public investment capital within the next three months.
The total state’s spending in 2021-2025 is predicted to reach VND10.26 quadrillion, of which 28 percent would be spent for investment and development.