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Unlocking Investment Opportunities: Accelerating Public Investment Disbursement in the Final Months

8 October, 2024

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Prime Minister urges stronger promotion of public investment disbursement in the last months of 2024

The Prime Minister of Vietnam has recognized and commended the efforts of ministries, central agencies, and local governments for their achievements in directing, managing, and implementing tasks, contributing to the country’s overall positive performance in the first nine months of the year. Hanoi and Ho Chi Minh City, with their significant roles and positions as the country’s economic hubs, have demonstrated a positive and noticeable shift in socio-economic development, with notable increases in state budget revenue, industrial production index, and total social investment capital compared to the same period last year.

Despite these accomplishments, the disbursement rate of public investment capital for the first nine months of the year is estimated at 47.29% of the plan assigned by the Prime Minister, lower than the same period in 2023 (51.38%), falling short of expectations.

The Prime Minister commended 13 ministries and central agencies, and 40 localities for their efforts in achieving a disbursement rate higher than the national average. Simultaneously, he criticized 31 ministries and central agencies, and 23 localities for their slower-than-average disbursement progress.

To boost economic growth, stabilize the macro-economy, and ensure the country’s major economic balances, it is necessary to vigorously direct and resolve obstacles to promote the disbursement of public investment capital. The aim is to achieve a disbursement rate of over 95% of the plan assigned by the Prime Minister for 2024. The Prime Minister requested ministers, heads of ministerial-level agencies, government agencies, chairpersons of provincial people’s committees, and suggested secretaries of provincial party committees, chairpersons of provincial people’s councils, and heads of provincial delegations of the National Assembly to enhance their sense of responsibility and focus on leading, directing, and implementing tasks with determination, synchronously, promptly, and effectively.

Addressing bottlenecks in public investment disbursement

Ministries, central agencies, and localities, according to their functions, tasks, and assigned authority:

It is essential to thoroughly grasp the role and significance of public investment in socio-economic development and recognize that public investment disbursement is one of the foremost political tasks of all levels and sectors. It contributes to economic growth, creates new development spaces, reduces logistics costs, and generates employment and livelihoods for the people.

Closely follow the Government’s and Prime Minister’s directives, especially the Prime Minister’s Directive No. 26/CT-TTg dated August 8, 2024, which emphasizes the determination to direct and implement the “5 commitments” and “5 guarantees.” The directive also underscores the need to “overcome the sun, win over the rain, and not lose to storms,” work during “mealtimes and rest times,” operate in “3 shifts and 4 teams,” and embrace the mindset of “only discussing doing, not discussing retreating.” These efforts aim to perfect institutions and policies, strengthen discipline and regulations, and promptly address bottlenecks in the implementation process, thereby promoting public investment disbursement in 2024.

Party committees and authorities at all levels should demonstrate strong determination, make great efforts, and take decisive actions. Task assignments must clearly specify the responsible individuals, tasks, responsibilities, progress, and outcomes. Attention should be given to monitoring, inspection, and supervision, with proactive and timely handling of difficulties and obstacles within their authority or through proposals to competent authorities for resolution according to regulations.

It is crucial to promptly address the aftermath of Storm No. 3 (Yagi), stabilize labor, materials, and equipment, and quickly resume construction on public investment projects affected by storms and floods. Additionally, it is essential to closely monitor weather conditions, implement effective natural disaster prevention plans, and proactively devise and organize suitable construction solutions, adjusting the progress of projects to ensure compliance with the approved schedules.

Expedite land clearance work by prioritizing the allocation of sufficient funds for compensation and clearance for eligible areas. Strengthen human resources and equipment, effectively conduct propaganda and mobilization, and accelerate the construction of resettlement areas to promptly hand over the cleared land for construction.

Continue to strictly implement the Government’s directions on resolving difficulties related to mining and mineral exploitation permits. Implement measures to control the price and quality of raw materials for public investment projects, ensuring efficiency and compliance with legal regulations.

Reduce the time for administrative procedures related to public investment disbursement by at least 30%

Accelerate the progress and reduce the time for administrative procedures related to public investment disbursement by at least 30%. Enhance the work of payment and settlement of public investment capital, avoiding the accumulation of completed volumes without payment and preventing the concentration of payments at the end of the year.

Further improve the effectiveness of the special working groups on public investment disbursement, led by the provincial People’s Committee Chairpersons. Assign leaders to monitor, inspect, and evaluate the concrete results of the work on a weekly basis, closely following the progress of projects and the resolution of related procedures at central ministries, agencies, and localities, as well as at subordinate units. This will help promptly rectify shortcomings and obstacles, accelerating the progress and disbursement of public investment capital.

Proactively review and assess the disbursement capacity of each project, aggregate the capital supplement requirements of the projects, and propose plans to adjust the capital allocation within the ministries, central agencies, and localities, in accordance with regulations.

Tighten discipline and regulations in public investment disbursement. Timely commend and reward organizations, individuals, and units with outstanding performance in public investment disbursement. Strictly handle investors, project management units, organizations, and individuals who deliberately cause difficulties, obstruct, or neglect their duties, resulting in delays in capital allocation, capital adjustment, project implementation, and public investment disbursement. Timely replace weak, sluggish, or corrupt officials and public employees who cause disturbances or engage in negative acts.

Enhance the quality of project preparation, closely follow the handling process of specialized agencies, promptly explain and complete the dossiers as prescribed, and thoroughly overcome the situation of “capital waiting for projects.” Prepare the best conditions to implement the public investment plan for 2025.

Hanoi and Ho Chi Minh City should further promote their internal strengths and leading economic roles, focusing on directing and implementing more drastic and effective solutions to promote the disbursement of public investment capital allocated for 2024. This will drive traditional growth drivers and explore new ones, synchronously and effectively implementing the Capital Law and Resolution 98/2023/QH15 of the National Assembly. These efforts will create new breakthroughs and strong shifts in the socio-economic development of the two cities, making more significant contributions to the country’s overall development.

Identify specific obstacles in projects and stages and propose concrete solutions

Heads of the Prime Minister’s working groups and Government members:

Strengthen the inspection, supervision, and removal of difficulties and obstacles in public investment disbursement by the seven working groups of the Prime Minister, established under Decision No. 1006/QD-TTg dated September 19, 2024. Maintain the quarterly working sessions of Government members with ministries, agencies, and localities to inspect, supervise, and address difficulties and obstacles in public investment disbursement, according to Decision No. 435/QD-TTg dated April 24, 2023, and Decision No. 967/QD-TTg dated September 12, 2024.

Enhance the quality of reporting at meetings, inspections, and supervision activities of the working groups and Government members. Reports must be carefully reviewed and comprehensively compiled, detailing causes and obstacles, ensuring clarity and practicality. Specifically identify obstacles in projects and stages and propose concrete solutions, along with the competent decision-making authority, for timely consideration and handling by the heads of working groups and Government members, in accordance with regulations.

The Ministry of Planning and Investment, in coordination with relevant agencies:

Collaborate with the Ministry of Finance to closely monitor the progress of public investment disbursement by ministries, central agencies, and localities. Provide regular monthly reports to the Government and the Prime Minister to issue flexible, timely, and practical solutions to achieve the target of public investment disbursement for 2024.

Proactively report and explain to the National Assembly and its agencies regarding the Law on Public Investment Amendment; the Law on Amending and Supplementing a Number of Articles of the Law on Planning, the Law on Investment, the Law on Investment in the Form of Public-Private Partnership, and the Law on Bidding; the Public Investment Plan for 2025; and the adjustment of the central budget investment plan for 2024 among ministries, central agencies, and localities, in accordance with regulations. Ensure quality and progress as required. Report on the evaluation results of the pilot implementation of separating site clearance projects from investment projects to the National Assembly’s Standing Committee and the National Assembly for nationwide implementation.

Provide guidance and address difficulties faced by ministries, central agencies, and localities in implementing the Law on Bidding, the Law on Investment in the Form of Public-Private Partnership, and the Law on Planning.

Proceed with payment for completed volumes of projects with sufficient dossiers

The Ministry of Finance, in coordination with relevant agencies:

Proactively report and explain to the National Assembly and its agencies regarding the Law on Amending and Supplementing a Number of Articles of the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on State Budget, the Law on Management and Use of Public Assets, the Law on Tax Administration, and the Law on National Reserves. Ensure compliance with regulations and progress in the formulation of the State Budget Estimate for 2025.

Instruct the State Treasury and functional units to ensure payment sources for projects and promptly proceed with payment for completed volumes of projects with sufficient dossiers, promoting online public services of the State Treasury.

The Ministry of Natural Resources and Environment

Continue to guide, remove difficulties, and simplify procedures related to the licensing of mines and the exploitation of raw materials for public investment projects, ensuring efficiency and compliance with regulations.

Provide guidance and address difficulties related to new provisions of the Land Law and related decrees, especially for projects that must calculate compensation and site clearance costs according to the new Land Law and other relevant legal documents.

The Ministry of Construction should closely monitor the situation and fluctuations in the construction materials market, especially for key materials, to facilitate timely handling in accordance with regulations. Guide, inspect, and urge localities to regularly update, adjust, and determine the price levels and price indices of construction materials monthly, ensuring timeliness, appropriateness, and effectiveness.

The Ministry of Planning and Investment shall take the lead in monitoring and urging ministries, central agencies, and localities to implement this dispatch. Promptly report and propose to competent authorities regarding issues beyond their authority.

Ministers, heads of ministerial agencies, government agencies, other agencies at the central level, and chairpersons of provincial people’s committees shall be responsible for seriously implementing the tasks assigned in this dispatch./.

Nhat Quang