RESOLUTE TO SPEED UP PUBLIC INVESTMENT DISBURSEMENT

Public investment disbursement is seen as one of the key tasks and solutions in the last months of 2021 to give a strong boost to economic recovery.

Just over 60% of the plan

In 2021, the total State investment fund (excluding VND16 trillion for national target programs which was not assigned by the Prime Minister) is more than VND584 trillion, including more than VND74 trillion of planned capital rolled over from previous years to 2021 and more than VND510 trillion of planned capital allocated in 2021.

According to the Ministry of Planning and Investment, the State investment fund disbursed in October 2021 was estimated at VND41.7 trillion, down 17.4% year on year, including VND7.7 trillion of a centrally managed fund, down 19.5% and VND34 trillion of a locally managed fund, down 16.9%. In the first 10 months of 2021, the disbursement reached VND318.6 trillion, equaling 64.7% of the full-year plan and down 8.3% year on year (fulfilled 67.8% and rose 31.6% in the same period of 2020).

Public investment disbursement is being affected by many new factors this year, including social distancing, mobility restrictions and rising input prices. Besides, other subjective reasons are unfocused and undetermined leadership of governments at all levels in inspection and supervision; slowed site clearance; and ineffective communications to the masses.

In fact, the COVID-19 pandemic has slowed investment capital flows, including social investment and State investment. However, given processing impacts, public investment is one of the important solutions to deal with existing difficulties; generate jobs and increase incomes for workers; and boost economic growth. According to the General Statistics Office (GSO), every 1% of the investment will help increase GDP by 0.06%. This is also a prime source of seeding capital to attract social investment, especially for “hungry” health infrastructure. Particularly in Ho Chi Minh City, VND1 of public investment capital attracts VND10 of social investment capital. Therefore, it is necessary to speed up public investment in order to attract social investment.

Close guidance, specific solutions

From now until the end of the year or just two months, nearly 40% of the public investment funds must be disbursed. This is a huge challenge that requires a great deal of effort and determination to get it done.

Before this reality, to create a driving force to "revive" and develop the economy, the Government took drastic measures to speed up the disbursement of this important fund, including Resolutions 01/NQ-CP and 45/NQ-CP; Resolutions of regular cabinet meetings; Resolution 63/NQ-CP on key tasks and solutions to accelerate economic growth, public investment disbursement and sustainable export in the last months of 2021 and early 2022; Dispatch 1082/CD-TTg of the Prime Minister; and many directives of the Prime Minister on accelerating disbursement of public investment in 2021.

Most recently, on October 25, the Government Office issued Official Dispatch 7776/CD-VPCP to ministers and heads of central government agencies; chairpersons of the People's Committees of centrally-run provinces and cities on accelerating public investment disbursement in 2021. Accordingly, Deputy Prime Minister Le Minh Khai requested them to review and solve difficulties, obstacles and bottlenecks in public investment disbursement immediately to strive for the highest disbursement rate of public investment in 2021.

They need to further raise the sense of responsibility and accountability in leading, directing and checking; urgently review and immediately handle difficulties, obstacles and bottlenecks in public investment disbursement within their jurisdiction.

In order to strive for the highest disbursement rate of public investment in 2021, the Prime Minister also requested the Ministry of Planning and Investment to review and minimize administrative procedures and increase online working to reduce time and cost and not cause trouble for central and local agencies.

Source: VCCI