The Big Seven: Unlocking Investment Potential with a 0% Disbursement Rate

To accelerate progress on key projects in the province, at the beginning of 2024, units and localities in Dong Nai province signed a pact on capital disbursement for public investment projects.

Accordingly, the investors and localities committed to disbursing 50% of the capital plan by the end of the second quarter of 2024.

However, by the end of May, very few units had achieved this target.

According to the Department of Planning and Investment, as of the end of May, only 5 units, including Nhon Trach and Tan Phu districts, Long Khanh city, the Department of Health, and the Department of Crop Production, Plant Protection, and Irrigation, had achieved a public investment disbursement rate of over 50%. Notably, 7 investors had a disbursement rate of 0%.

In 2024, the total public investment capital in Dong Nai province is over VND 19,300 billion (including capital carried over from 2023). However, by the end of May 2024, the total disbursed capital in the province had only reached nearly VND 2,700 billion, or nearly 14% of the plan. Some projects could not complete the 2023 capital disbursement plan and had to be extended to 2024 due to site clearance issues that remain unresolved.

According to representatives of some investors, the biggest obstacle affecting the progress of public investment disbursement in the province is site clearance for construction projects, especially key transportation projects. A series of key transportation projects such as the two component projects of the Bien Hoa – Vung Tau Expressway project, the Ring Road 3 of Ho Chi Minh City, the road along the Dong Nai River and the park, the dike of the Dong Nai River, the road along the Cai River… have not achieved the capital disbursement plan, although the functional agencies and localities have launched site clearance campaigns.

According to Le Hoang Son, Vice Chairman of Long Thanh District People’s Committee, in the past time, the locality had to prioritize human resources for site clearance of key national projects, especially the Bien Hoa – Vung Tau Expressway project. Therefore, there was a shortage of human resources for site clearance of other public investment projects.

Recently, when inspecting the construction project of Thong Nhat Bridge in Thong Nhat Ward (Bien Hoa City), which is delayed due to site clearance, land retrieval from a household, Ho Van Nam, Secretary of Bien Hoa City Party Committee, said that the relevant agencies and units have been dealing with the proposal since Tet, but have not handled it thoroughly, showing a sign of irresponsibility. He requested the Dong Nai Land Development Center to coordinate with the People’s Committee of Bien Hoa city and Thong Nhat ward to soon resolve this case in accordance with regulations but not to let the people suffer.

Vo Tan Duc, Acting Chairman of Dong Nai Provincial People’s Committee, admitted that the progress of public investment disbursement and site clearance for projects in the province is slow and has not met the set plan.

The Acting Chairman of the Provincial People’s Committee requested the heads of investment units and localities to make detailed plans for public investment disbursement. Once the plan is made, it must be implemented monthly and quarterly to avoid the situation of being free at the beginning of the year and rushing at the end of the year as in previous years.

The Provincial People’s Council also requested the Provincial People’s Committee to have more effective solutions and higher political determination in directing the thorough settlement of difficulties and obstacles in the implementation of projects, especially long-term projects, to promote the efficiency of using public investment capital. The Provincial People’s Committee needs to continue directing the improvement of the responsibility of investors and relevant agencies and units; direct the review of cases where contractors construct slowly or cancel contracts to re-tender and handle them according to regulations.