Construction of the North-South Expressway Eastern Phase 2021-2025 project. (Photo: Việt Hùng/Vietnam+)
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With a relatively large investment capital allocation for national and key transport projects during the 2021-2025 period, the Ministry of Transport has been striving to maximize the disbursement of the government’s plan.
Failing to “absorb” nearly VND 26.9 trillion
According to a report by the Planning and Investment Department, the Ministry of Transport is expected to be assigned a total plan for the 2021-2025 period of about VND 396,435 billion. This includes VND 295,888 billion in medium-term public investment capital for the 2021-2025 period; VND 81,269 billion from the Program for Socio-economic Recovery and Development; and VND 19,278 billion in additional central budget revenue for the years 2021, 2022, and 2023.
By the end of 2024, the Ministry of Transport had been assigned an annual plan by the Prime Minister of VND 291,922 billion, leaving a plan investment balance of VND 104,513 billion.
To implement this task, the Planning and Investment Department held a meeting with investors, the Department of Investment Management, and the Vietnam Expressway Corporation to review the implementation of the 2024 plan and discuss the 2025 plan requirements. Based on this meeting, investors proposed a 2025 plan requirement of about VND 77,624 billion out of VND 104,513 billion for the Ministry (an increase of about VND 5,172 billion compared to the previous report).
“Thus, the phase 2021-2025 capital plan will have about VND 26,889 billion left unused (VND 14,511 billion in foreign capital and VND 12,378 billion in domestic capital),” added the leader of the Planning and Investment Department.
Upon review, the Planning and Investment Department noticed that some investors registered their 2025 plan requirements for projects to be completed in 2025 or to be continued in the next phase, but the registered amount was lower than the allocated medium-term capital.
 A bridge on the North-South Expressway being constructed by a contractor working on the pillar body. (Photo: Việt Hùng/Vietnam+)
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Specifically, for projects using additional central budget revenue in 2022 and 2023, the principle is that this capital must be fully disbursed by 2025. However, the registered amount by investors is about VND 6,875 billion lower than the expected allocation for 7 out of 9 projects: Cao Bo-Mai Son reduced by VND 400 billion out of VND 1,200 billion; the road connecting Noi Bai-Lao Cai Expressway with Tuyen Quang-Phu Tho Expressway reduced by VND 406 billion out of VND 1,098 billion; National Highway 24B in Quang Ngai has not registered VND 596 billion out of VND 598 billion; upgrading and expanding some bridges and tunnels on National Highway 1 reduced by VND 745 billion out of VND 2,000 billion; Cam Ly Bridge reduced by VND 320 billion out of VND 800 billion; La Son-Hoa Lien reduced by VND 1,207 billion out of VND 3,009 billion; and Cam Lo-La Son reduced by VND 3,202 billion out of VND 7,000 billion.
For domestic projects that must be completed by 2025 or continued in the next phase, the registered medium-term plan requirement was reduced by about VND 4,899 billion for 6 projects: Cho Moi-Bac Kan reduced by VND 1,793 billion; Dai Ngai Bridge reduced by VND 1,600 billion; Duong River Railway Bridge reduced by VND 837 billion; Dau Giay-Tan Phu Expressway reduced by VND 446 billion; Lo Te-Rach Soi reduced by VND 118 billion; and Cao Lanh-Lo Te reduced by VND 104 billion.
For ODA projects, there was a reduction of VND 10,466 billion (VND 8,858 billion in foreign capital and VND 1,608 billion in domestic capital) for 9 projects: Tan Van-Nhon Trach reduced by VND 1,964 billion; My An-Cao Lanh reduced by VND 1,913 billion; Hoa Duyet-Thanh Luyen Railway reduced by VND 1,762 billion; Southern Waterway and Logistics reduced by VND 1,717 billion; Connecting Transport in Northern Mountainous Provinces reduced by VND 1,093 billion; Weak Bridges on National Highways Phase 2 reduced by VND 644 billion; Khe Net Pass Railway reduced by VND 608 billion; Weak Bridges on National Highways Phase 1 reduced by VND 462 billion; and Ninh Cuong Bridge on National Highway 37B reduced by VND 302 billion.
Striving to disburse 100% of the assigned capital in 2024
Based on this, the leader of the Planning and Investment Department requested investors to review their 2024 disbursement capacity based on the annual plan assigned by the Minister of Transport and the expected adjusted and supplemented plan to disburse 100% of the year’s capital plan for the entire Ministry, in accordance with the Minister’s directive to “strive to disburse 100% of public investment capital in 2024.”
Given the important role of the year 2025, the Planning and Investment Department requested investors to review and accurately reassess their 2025 plan requirements, ensuring sufficient capital to complete and implement projects according to the approved schedule. For the North-South Expressway projects, it is necessary to ensure funding for intelligent transportation systems, non-stop toll collection, and vehicle weight control, with completion expected in 2025. Investors should also strive to register the maximum disbursement of the remaining 2021-2025 phase plan in the 2025 plan for all capital sources that have been assigned by the Prime Minister and are expected to be assigned.
Investors should also improve the construction and execution of plans and coordinate closely with the Planning and Investment Department in capital investment plan development.
In 2024, the Ministry of Transport was assigned VND 59,275 billion in public investment capital by the Prime Minister.
In addition, there is an extended disbursement of the 2023 plan into 2024, amounting to about VND 3,329 billion. The government has also reported to the National Assembly’s Standing Committee on supplementing VND 8,680 billion from the additional central budget revenue in 2023 for the Ministry. The Ministry continues to request a supplement of VND 3,300 billion for Group B projects that lack capital and about VND 1,240 billion from the additional central budget revenue in 2022 for projects that have completed investment procedures.
Viet Hung
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