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Update news public investment
The Ministry of Finance has announced the public investment disbursement in the two-month period with positive results, as both the total disbursed capital and the disbursement rate were higher than the same period last year.
The Government proposed to the National Assembly an additional allocation of more than 63.72 trillion VND (2.59 billion USD) for the mid-term public investment plan from the central budget for the 2021-2025 period.
The disbursement of public investment in 2023 was projected to reach 95% of the plan, equivalent to over 27 billion USD, marking the record high so far, according to Deputy Minister of Planning and Investment Tran Quoc Phuong.
As much as 579.8 trillion VND (23.77 billion USD) worth of public investment was disbursed last year, equivalent to 73.5% of the yearly plan and nearly 82% of that assigned by the Prime Minister, according to the Ministry of Finance.
As the year draws to a close, Vietnam is intensifying efforts to accelerate the disbursement of public investment funds.
As of October 31, the disbursement of public investment was estimated at over 401.86 trillion VND (16.37 billion USD), completing 52.1% of the set plan and 56.84% of the target assigned by the Prime Minister, the Ministry of Finance reported.
As economic growth is slowing down, the production sector is facing difficulties and people have had to tighten their purse strings. Fiscal expansion needs to be considered.
While the public investment spending rate in the first half of the year was much better than the same period last year, some transport infrastructure projects were still implemented too slowly compared to the set plan.
Rebounds in retail and consumption services and in the disbursement of public investment are expected to put pressure on the country’s efforts to bring inflation under control this year.
The Ministry of Planning and Investment has been assigned to publicize the names of ministries, central bodies, and localities that have a disbursement rate of public capital below the country’s average rate on the national public service portal.
A series of construction enterprises will benefit from the Government implementing multiple strategic public investment infrastructure projects.
Minister of Finance Ho Duc Phoc said since capital for public investments cannot be disbursed, the Ministry of Finance has had to leave VND1 quadrillion worth of capital at banks with the interest rate of 0.8 percent per annum.
The HCMC People’s Council has endorsed the city People’s Committee’s proposal to add VND19,555 billion to the city’s 2021-2025 mid-term investment plan, funded by the local budget.
To speed up disbursement, Prime Minister Pham Minh Chinh last week issued Directive No.08/CT-TTg on accelerating allocation and disbursement of such capital to reach 95 per cent of the total yearly plan.
The incomes from land and houses in the first two months of the year were only 47 percent of the figure of the same period last year.
The execution of the Ben Luc - Long Thanh highway has been interrupted for a long time due to problems in reciprocal capital arrangement. Foreign contractors have filed a claim for damages.
It is anticipated that public investment will be further encouraged during 2023, signalling a significant advance for both the real estate sector and overall economic growth.
Vietnamese Prime Minister required both to ensure a high disbursement rate of public investment capital and the right quality and efficiency of projects.
While the real estate market is gloomy and realtors need capital, some enterprises are developing projects with investment capital of trillions of VND.
Minister of Planning and Investment Nguyen Chi Dung has said that projects under the economic recovery program have been going slowly because many projects have to be revised.