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Vietnam is entering the peak period of disbursing public investment capital

In the difficult context of the economy negatively affecting GDP growth, public investment capital in Vietnam is identified as one of the important pillars and driving forces for recovery. However, in reality, disbursement is still slow, many projects that have lasted for many years need to be resolved soon.


public investmentcapital in Vietnam

Many problems with raw materials and site clearance


Mr. Nguyen Quang Huy - General Director of Deo Ca Transport Infrastructure Investment Joint Stock Company - said: "2023 is a pivotal year for public investment. The last months of the year will be the peak of budget capital disbursement. Transport infrastructure businesses like us also focus on output and disbursement results in the last months of this year."


However, in the process of implementing projects, Mr. Huy realized that the biggest difficulties for businesses lie in policies and materials. "Materials for North-South expressway projects are still lacking. However, Vietnam has "golden forests and silver seas", there is no shortage of land and sand to serve projects but needs appropriate policy mechanisms to disassemble and license material quarries for contractors to implement the project on schedule" - Mr. Huy said.


Besides problems with raw materials, Mr. Nguyen Tuan Anh - Deputy General Director of Truong Son Construction Company - said that site clearance work also has many bottlenecks. Accordingly, businesses rarely receive clean premises immediately, but mostly in small doses and intermittently. This directly affects the quality and efficiency of construction. This is also a big reason that has hindered public investment projects up to now.


Stabilize raw material prices to ensure supply


Agreeing with the business, Mr. Vu Thanh Hai - Chief Auditor, State Audit Specialized IV, State Audit - assessed the progress of compensation, site clearance support, and resettlement in most Projects that have not followed the plan affect the project implementation progress. Construction delays occur in most bidding packages and projects. Although some projects are behind schedule and taking a long time, there are no remedial measures; Handling sanctions and penalties for related parties have not been seriously implemented.


There is also the problem of organizing implementation at ministries, branches, and localities, which still has some shortcomings. "Some investors and project management boards are not proactive and even afraid of responsibility when implementing and approving payment and settlement procedures; the professional capacity of some project managers, Supervision consultants, contractors... are still limited" - Mr. Hai said.


State Audit leaders emphasized the need for more drastic and timely solutions to stabilize construction material prices while ensuring supply. Instructions on implementing contract adjustments and contract price adjustments due to the impact of material price fluctuations for ongoing projects according to the provisions of law to ensure on schedule. Promote the application of information technology in handling public investment procedures such as appraisal of investment projects with construction components, implementation of domestic capital expenditure control and capital withdrawal applications from donors with evidence electronic words, and digital signatures, simplifying the expense control process and capital withdrawal request documents.


BOX: According to data from the Ministry of Planning and Investment, in the first 9 months of 2023, the disbursement rate of public investment capital reached 50.68%, equivalent to 51.38% of the plan assigned by the Prime Minister. Mr. Pham Luu Hung - Chief Economist at SSI Securities Company - expects public investment disbursement this year to reach 95% of the plan because Vietnam's fiscal year will last until the end of January 2024. He said: "The scale of public investment capital in 2023 is very large because it is the last year of the economic recovery and development plan. I expect that if not fully disbursed, the remaining capital will be transferred by the National Assembly to disbursement." of 2024. Because the plan for 2024 will not be as high as 2023 when combined with the economic recovery and development package."


(Lao Dong)


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