HCMC STEPS UP PUBLIC INVESTMENT DISBURSEMENT

Fresh asphalt pavement is laid on a section of the Beltway No. 3 project in HCMC - PHOTO: VNA

HCMC – HCMC has ordered agencies and local authorities to accelerate public investment disbursement, which reached a mere 10.5% of the full-year target in the first four months of the year.

The city aims to fully disburse its record VND147.6 trillion public investment plan this year by removing bottlenecks related to land clearance, administrative procedures and construction, reported the Vietnam News Agency.

According to the HCMC Department of Finance, the city disbursed VND15.6 trillion in January-April, below the national average.

The southern metropolis was assigned the country’s largest public investment allocation for 2026, up 22.6% from last year and accounting for around 14.6% of Vietnam’s total public investment budget.

Hoang Vu Thanh, director of the Department of Finance, attributed the slow progress partly to the recent restructuring of the public investment management system.

The city reassigned responsibilities among project investors and management boards and established new commune-level project management units, slowing the transfer of documents and administrative work.

At a socioeconomic conference on May 8, Hoang Nguyen Dinh, vice chairman of the city’s People’s Committee, instructed agencies to treat full disbursement as a mandatory target rather than a goal to “strive” for.

Authorities warned that agencies and project investors missing disbursement targets could face accountability reviews in year-end performance evaluations.

The Department of Finance set a target for second-quarter disbursement at 30% to 35% of the full-year plan and maintained the goal of reaching 100% by year-end.

The city also ordered agencies to apply a “six clear principles” approach covering personnel, tasks, responsibilities, authority, timelines and outcomes. Officials will increase field inspections and focus on issues related to planning, design, bidding, contractor selection and land clearance.

Land clearance remains one of the main obstacles affecting key infrastructure projects.

According to the Department of Agriculture and Environment, the city allocated VND33.7 trillion for compensation and site clearance across 165 projects this year. About VND8.6 trillion, or 25% of that amount, has been disbursed so far.

The department attributed delays to land recovery procedures, site measurement and legal verification requirements under the 2024 Land Law.

Authorities in 168 communes, wards and special zones were instructed to review and resolve land clearance issues to avoid delays caused by paperwork moving between agencies.

Rising construction material costs have also affected several major projects.

The HCMC’s Beltway Road No. 3 project is expected to be delayed by about six months from the original schedule, according to the HCMC Management Board for Investment and Construction of Transportation Projects.

The authority reported that overall construction progress reached about 76%, with packages in the former Thu Duc City area at 83% completion and works in Cu Chi, Hoc Mon and Binh Chanh at around 68%.

It attributed the pressure partly to rising fuel prices linked to tensions in the Middle East, which increased the costs of transporting materials and operating equipment. Shortages of imported asphalt and asphalt concrete also affected construction schedules.

Project owners and contractors are working with quarry operators to increase material supply while authorities proposed updating official construction material price lists to better reflect market conditions.

Source: The Saigon Times