Chủ đề: public investment

Deputy Prime Ministers Pham Binh Minh, Le Minh Khai, Vu Duc Dam, and Le Van Thanh, Minister of Planning and Investment Nguyen Chi Dung, and Minister of Finance Ho Duc Phoc will lead six working groups on the disbursement of public investment capital that Prime Minister Pham Minh Chinh established on May 2. The working groups are tasked with conducting inspections, removing difficulties and obstacles, and accelerating disbursement this year, especially in projects using ODA capital and concessional loans from foreign donors through ministries and central and local agencies.

There are many signs that stocks in the public investment group will break out in the near future.

The Ministry of Finance (MoF) has asked ministries and ministerial-level agencies to urgently allocate public investment capital in 2022 in preparation for disbursement. Regarding foreign capital, it has asked investors to soon complete applications for capital withdrawal and forward these to the ministry.

The Ministry of Planning and Investment (MPI) has released Official Publication No. 02/CD-BKHDT to relevant individuals, ministries, and agencies, containing a list of projects under the Socio-economic Development and Recovery Program and proposing additional estimates and public investment plans in 2022.

The Ministry of Transport (MoT) has proposed public investment in three key national highways rather than in the public-private partnership (PPP) form, with funding totaling more than VND84.8 trillion ($3.7 billion), including Khanh Hoa - Buon Ma Thuot, Bien Hoa - Vung Tau, and Chau Doc - Can Tho - Soc Trang. It will make a submission to the National Assembly (NA) for a decision at its meeting in May.

As of the end of December, the Ministry of Transport (MoT) had disbursed VND37.171 trillion ($1.64 billion) of public investment capital, or 85.6 per cent of the annual plan. For disbursement to hit at least 96 per cent of the plan, the ministry will have to disburse at least VND4.4 trillion ($194.1 million) in January.

Twelve component projects of the Eastern North-South Expressway have been proposed for implementation in the 2021-2025 period entirely under the public investment form, with total capital of VND147 trillion ($6.5 billion) from the State. With a payback period of ten years, it is expected that VND37.88 trillion ($1.67 billion) will have been collected for the State budget.

A Ho Chi Minh City National Assembly (NA) delegate has proposed that the legislature allow the transfer of VND100 trillion ($4.4 billion) in unspent public investment this year to support businesses and pandemic prevention and control. Another delegate, from northern Lao Cai province, proposed loosening the public debt ceiling and increasing the budget deficit to mobilize capital to both fight the pandemic and support businesses and people.

Public investment is viewed as a key solution in dealing with the economic downturn, with the construction industry, the construction materials industry, and the real estate industry forecast to benefit the most.

Issues relating to site clearance need to be addressed to speed up the implementation of public investment projects.

Many National Assembly (NA) delegates expressed concern at the legislature’s ongoing session about the ability to mobilize and balance revenue and secure public debt as the government is planning to spend VND2.87 quadrillion ($124.93 billion) on public investments in the 2021-2025 period, an increase of more than VND870 trillion ($37.81 million) compared to the 2016-2020 period.