Unlocking Public Investment Capital: No More Counting by Days!

3 November, 2024

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On October 31, Ho Chi Minh City People’s Committee organized a meeting to evaluate the socio-economic development situation in October and the first ten months of 2024.

Multiple reasons for missing the plan

One of the main topics of discussion during the meeting was the public investment capital disbursement in 2024. According to Mr. Pham Trung Kien, Deputy Director of the Department of Planning and Investment, as of October 25, Ho Chi Minh City disbursed more than VND 17,200 billion, reaching 21.8% of the planned capital allocation. This figure is lower than the target set by the units at the beginning of the year, which was 29% after ten months.

The main reason for this discrepancy is the recent addition of a large amount of medium-term public investment capital to Ho Chi Minh City, following the National Assembly’s Resolution 98/2023. Another reason is that the group of projects that received additional capital are still in the investment procedure stage and have not reached the disbursement step. Moreover, some projects are facing obstacles due to changes in regulations related to the Land Law and the Bidding Law.

Vice Chairman of Ho Chi Minh City People’s Committee, Mr. Nguyen Van Dung, speaks at the meeting. Photo: Ho Chi Minh City Press Center

In addition, Ho Chi Minh City has several projects that require the approval of central agencies, which has slowed down the disbursement process. Some notable projects in this group include the anti-tidal flooding project that takes into account climate change, and the metro line No. 1. These projects account for approximately VND 10,000 billion of the city’s public investment capital. On the other hand, about VND 4,000 billion of public investment capital is allocated to projects that require adjustments to the detailed planning at the scale of 1/2,000 or 1/500.

The total balanced state budget revenue for the first ten months of 2024 in Ho Chi Minh City is estimated at VND 408,468 billion, reaching 84.6% of the estimate, an increase of 10% over the same period. The industrial production index (IIP) continues to recover and maintain a positive growth rate. It is estimated that the IIP in October increased by 8.9% over the same period last year, and in the first ten months, it increased by 6.9%.

According to Mr. Pham Trung Kien, the city has about VND 32,000 billion of public investment capital that is facing obstacles due to compensation and site clearance issues, such as the Rach Xuyen Tam project and the North Bank of Kenh Doi project. The Deputy Director of the Department of Planning and Investment affirmed that accelerating the disbursement of public investment capital is considered an urgent task in the last months of 2024. Departments and sectors are making efforts to simultaneously implement multiple solutions. One of the key focuses is to streamline administrative procedures with the spirit of “not counting by days, but immediately processing applications upon receipt.”

Obstacles being addressed

Clarifying the group of projects facing compensation and site clearance issues, Mr. Vo Trung Truc, Deputy Director of the Department of Natural Resources and Environment, shared that in 2024, there were 176 projects in this category across the city.

Before September, the total expected capital allocation was just over VND 21,000 billion. With the new Land Law coming into force, some projects have increased their total investment due to the associated regulations and policies to support affected households.

Mr. Vo Trung Truc stated that previously, while waiting for the Land Law 2024 and its detailed guidelines to take effect, a series of projects in the city were temporarily suspended from June to October. Now that most of the provisions for implementing the Land Law 2024 have come into force, the city will focus on compensation for 84 projects with a total capital of more than VND 32,000 billion in November and December.

The project of dredging, infrastructure construction, and environmental improvement on the North Bank of Kenh Doi (District 8) is part of the city’s disbursement efforts. Photo: QUOC ANH

Specifically, in November, Ho Chi Minh City aims to disburse 36 projects with a total capital of about VND 7,700 billion. In December, the city will disburse the remaining 48 projects with a total amount of more than VND 25,000 billion.

Establishing a “responsibility list”

At the meeting, Vice Chairman of Ho Chi Minh City People’s Committee, Mr. Nguyen Van Dung, affirmed that the city maintains its economic growth target of 7%-7.5% for 2024. Therefore, it is crucial to implement focused and effective solutions to achieve this goal, especially in terms of public investment capital disbursement.

Mr. Nguyen Van Dung remarked that the issue of public investment capital disbursement has been extensively discussed. The city’s leaders have directly visited each project to understand the challenges faced by the units. Each investor, district, and Thu Duc City has put forth specific solutions and determined to meet the set milestones, yet the disbursement rate remains unsatisfactory. The city has set monthly targets, but they have not been achieved. As a result, the cumulative targets for the remaining months will be challenging.

Hence, the Vice Chairman of the Ho Chi Minh City People’s Committee requested the Department of Planning and Investment to conduct a thorough review. If a unit sets a target but fails to achieve it, they must analyze and evaluate the reasons. If a unit is unable to perform, they should propose solutions and make commitments. Units that successfully disburse their allocated capital should be encouraged.

“It is necessary to create this list to identify the specific units, investors, and responsibilities to accelerate the progress of public investment disbursement,” emphasized Mr. Nguyen Van Dung. He also shared that each member of the Standing Committee of the Ho Chi Minh City People’s Committee has been assigned to oversee specific projects and has conducted field visits to inspect and address difficulties…

Focus on a 60-day intensive campaign

Vice Chairman of Ho Chi Minh City People’s Committee, Mr. Nguyen Van Dung, requested that the departments, sectors, districts, Thu Duc City, and relevant agencies focus on a 60-day intensive campaign with the spirit of “determination, acceleration, and doubling productivity.” This campaign aims to strive to achieve the socio-economic targets for 2024, as well as meet the targets for national defense and security, and advance the progress of key programs, projects, and national target programs of the city.

Regarding the work of preventing and combating corruption, wastefulness, and negativity, as directed by the Central Committee, Vice Chairman Nguyen Van Dung suggested that the city should carefully study the instructions of the General Secretary and the Central Committee to advise the Ho Chi Minh City People’s Committee on the implementation plan. Ho Chi Minh City will review and evaluate specific projects that have been suspended for a long time to take appropriate measures and avoid wastefulness. Mr. Nguyen Van Dung emphasized the need to “act quickly and urgently” in implementing anti-corruption measures and preventing wastefulness and negativity in the management and use of public assets in the city.