Removing obstacles to boost public investment

Despite strong determination, the results achieved remain low. According to newly released data from the Ministry of Finance , estimated disbursements of public investment capital from the beginning of the year to July 31, 2024, amounted to approximately VND 232,091 billion, reaching only 32.22% of the total plan, equivalent to 34.68% of the capital plan assigned by the Prime Minister.

Perhaps the urging wasn't strong enough, sir?

I don't think so, because as early as the end of the first quarter, the Prime Minister issued a directive on accelerating the allocation and disbursement of public investment capital in 2024, emphasizing the need to raise awareness among all levels and sectors about the role and significance of public investment in socio-economic development; identifying the disbursement of public investment as one of the top priority political tasks that requires focused leadership, guidance, and implementation.

In the directive, the Prime Minister requested the urgent allocation of detailed state budget investment plans for 2024 in accordance with regulations, without delay; the detailed allocation of capital plans must ensure focus on key areas and avoid spreading resources too thinly.

To avoid a situation where things start slowly but end abruptly, the government regularly requires ministries, departments, localities, and project owners to develop detailed disbursement plans for each project and strictly adhere to these plans on a monthly and quarterly basis.

In public investment activities, if one stage or step is hampered or stalled, all subsequent stages will be halted, especially land clearance - the most crucial stage. Therefore, not only this year, but in recent years, the Government has always required a focus on accelerating land clearance progress, construction progress, and resolving difficulties and obstacles related to land and resources.

The investor must strengthen on-site inspection and supervision, urge contractors to accelerate progress; assign specific leaders to be responsible for monitoring implementation progress; and consider the results of public investment disbursement as an important basis when evaluating and ranking the level of completion of assigned tasks annually for heads of agencies, units, and relevant individuals.

So what difficulties are preventing public investment activities from making significant progress?

As I said, public investment is a process with many stages; if one stage is interrupted, the entire process is halted. Therefore, the Prime Minister has requested that leaders of ministries, sectors, and localities pay serious attention to accelerating progress, resolving difficulties in the supply of construction materials, speeding up investment preparation, investment decisions, and contractor selection for key national projects and construction investment projects in their respective areas.

Faced with difficulties and obstacles in disbursement, at the end of April 2024, the Prime Minister issued Directive 12/CT-TTg on tasks and solutions to promote socio-economic development, which emphasized public investment activities. Public investment is considered one of the three pillars of economic growth, so the Prime Minister instructed ministries, sectors, and localities to be more decisive in land clearance and to accelerate the construction progress of key projects and works.

Following this directive, the disbursement progress has improved, with each month surpassing the previous one, as ministries, sectors, and localities have strengthened discipline and order in the disbursement of public investment capital. Strict penalties have been imposed on organizations and individuals who intentionally delay the allocation, implementation, and disbursement of public investment capital; incompetent and sluggish officials and civil servants have been promptly replaced; and negative and corrupt practices in public investment management, especially in key national projects, have been resolutely dealt with according to the law.

Directive 12/CT-TTg also requires the Ministry of Finance (specifically the State Treasury) to expedite the payment and settlement process. Disbursement is the final stage in public investment, sir; are there any obstacles in this stage?

There were no obstacles, because the State Treasury had simplified and shortened the time and procedures for disbursing public investment capital by promoting digital transformation and online public service payments. From the beginning of the year, the State Treasury directed the entire system to control payments for basic construction investment projects, ensuring compliance with the annual capital plan allocated by competent authorities, adhering to payment control principles, documentation, and payment control timelines; and simultaneously recording and compiling difficulties and obstacles in disbursing public investment capital to report to competent authorities for consideration and resolution.

The State Treasury has issued approximately 50% of its 2024 government bond fundraising plan (400,000 billion VND). This is the largest volume of government bonds ever issued, with a very low interest rate of only 2.33% per year – significantly lower than the average fundraising interest rate in 2023 (3.21% per year). The funds are sufficient, payment procedures are streamlined, and payment documentation has been simplified to the minimum; disbursement is immediate upon completion and submission by the investor or contractor.

Despite the more positive results, the disbursement of public investment funds is still facing obstacles. In your opinion, what are the reasons for this?

Besides the inherent and very difficult problem of land clearance, several obstacles have now emerged within the mechanisms and policies themselves.

Disbursing public investment funds requires not only political will but also the removal of obstacles arising during implementation, addressing problems as they arise and resolving them immediately. In line with this perspective, the Government has directed ministries and agencies to review regulations and propose amendments to facilitate disbursement as much as possible.