Why Are 283 Public Investment Projects in Ho Chi Minh City Delayed?

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The Ho Chi Minh City People’s Committee has reported to the Ministry of Planning and Investment on the monitoring and comprehensive evaluation of investments in 2023.

According to the Ho Chi Minh City authorities, hundreds of projects in the area are delayed.

Specifically, the total volume of investment projects using public investment capital in this period amounted to more than VND 43,696 billion, accounting for 71.65% of the city’s public investment plan for 2023.

There were 1,930 projects implemented during this period, including 1,676 ongoing projects and 254 new projects. 283 projects were delayed, of which 157 were due to site clearance issues.

Workers constructing a section of the Ring Road 3 project in Hoc Mon district

The Ho Chi Minh City People’s Committee stated that after the projects were approved by the competent authorities, the investors developed overall and detailed plans for each specific project. The projects were generally implemented as scheduled. However, fluctuations in material prices, site clearance compensation, and other factors caused delays in some projects. These delays were attributed to factors such as investment procedures, the capacity of investors and project management units, and untimely capital allocation.

Ho Chi Minh City’s public investment plan for 2024 is over VND 79,000 billion. The city has set a target to achieve a disbursement rate of at least 95% of the total planned capital.

To overcome these challenges and improve disbursement, the Ho Chi Minh City People’s Committee has issued decisions on allocating the 2024 public investment plan since the end of 2023 and the beginning of 2024.

The city authorities instructed units and investors to develop and finalize disbursement plans, including detailed monthly disbursement schedules for each project, along with specific tasks and timelines based on the principles directed by the People’s Committee: 10% in the first quarter, 30% in the second quarter, 70% in the third quarter, and 95% in the fourth quarter.

The Ho Chi Minh City People’s Committee also issued Notification 357/2023, directing specialized departments to shorten the time for handling procedures for public investment projects by at least 30% compared to regulations. Procedures related to site clearance compensation must be completed within a maximum of 30 days, while other investment procedures should take a maximum of 10 days, with the People’s Committee providing further directions within 7 working days.

The managing authorities and investors are encouraged to implement measures to accelerate construction, such as encouraging contractors to work in three shifts and providing timely support to address difficulties and obstacles during project implementation.

Ho Chi Minh City continues to study and thoroughly apply the special mechanisms in Resolution 98/2023 of the National Assembly on piloting some special mechanisms and policies for the city’s development to expedite the processing of dossiers. At the same time, the city reports to ministries and sectors to promptly provide guidance on matters that are not yet specific when applying this resolution.

Ho Chi Minh City also完善s the coordination regulations to clarify the roles and responsibilities of focal points and coordinating agencies of the task forces. Linking the disbursement of public investment with the evaluation of emulation and personnel work, enhancing the responsibility of leaders, and applying sanctions for organizations and individuals with low disbursement rates.

In 2023, a total of 607 projects using state capital outside of public investment were put into operation, including 3 Group B projects and 604 Group C projects.

The projects that were put into operation and exploitation ensured quality, and no technical issues or inefficient investment were detected.

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