Local Governments Unite to Secure Material Supplies for Public Investment Projects

Working Group No. 5, led by Deputy Prime Minister Bui Thanh Son, inspected the following ministries, agencies, and localities: Ministry of Foreign Affairs, Ministry of Industry and Trade, Vietnam Electricity Group; and the provinces of Long An, Tien Giang, Ben Tre, Tra Vinh, Vinh Long, Can Tho, Hau Giang, Soc Trang, An Giang, Dong Thap, Kien Giang, Bac Lieu, and Ca Mau.

In 2025, the total plan for investing state budget capital assigned by the Prime Minister to the three central ministries and agencies and 13 localities of Working Group No. 5 amounted to more than VND 100,687 billion, accounting for 12.2% of the country’s total investment plan.

According to the Ministry of Finance, as of April 30, three central ministries and agencies, and eight out of 13 localities have fully allocated the assigned capital plans. The remaining five localities have not fully allocated their plans, with a total remaining capital of about VND 1,028 billion.

Regarding disbursement, as of April 30, the ministries, agencies, and localities of the Working Group achieved 12.85%, lower than the country’s average of 15.56%.

The localities that achieved higher disbursement rates than the national average include Long An (21.27%), Tien Giang (21.09%), Vinh Long (16.95%), Dong Thap (16.26%), and Bac Lieu (19.6%).

The reasons for the incomplete allocation of capital plans by some localities include newly-started projects that have not completed investment procedures, and projects awaiting adjustments and supplements to their medium-term capital plans.

Additionally, several projects for the construction of office buildings had to be temporarily halted due to organizational restructuring and local financial constraints regarding land use fees.

Furthermore, there have been numerous changes in the legal documents related to investment, construction, and bidding, requiring time for research and implementation.

Insufficient preparation in the early stages of investment has led to the need for supplements and adjustments to investment policies and projects during their execution.

Land clearance remains a challenging issue, causing delays in project implementation and the disbursement of capital plans.

At the meeting, localities such as Ben Tre and Can Tho reported ongoing difficulties in ensuring material supplies (sand and stone) for transportation infrastructure projects.

Can Tho, Long An, and Tra Vinh proposed to the Prime Minister to allow the transfer of capital from projects in 2024 to 2025.

Tra Vinh province suggested that the Ministry of Construction provide uniform guidance to enable localities to implement projects effectively between provincial and communal levels under the two-tier administrative system, ensuring continuity in the disbursement of public investment capital.

Concluding the meeting, Deputy Prime Minister Bui Thanh Son appreciated the honesty and openness of the ministries, agencies, and localities in identifying the challenges and proposing solutions to promote the progress of capital allocation and disbursement in the coming time.

The Deputy Prime Minister commended the three ministries and agencies, along with eight out of 13 localities, for completing the allocation of their assigned capital plans. He also praised Tien Giang and Long An provinces for their continued proposals to the Central Government to supplement public investment capital and requested these localities to submit documents to the Ministry of Finance for reporting to the Prime Minister.

The Deputy Prime Minister also acknowledged the experience of some localities in transferring project management units from the district level to the provincial level, which has helped expedite the implementation of projects.

Regarding the five out of 13 localities that have not fully allocated their assigned capital, the Deputy Prime Minister requested them to urgently take measures to allocate the remaining capital.

Emphasizing the disbursement rate, the Deputy Prime Minister pointed out that the ministries, agencies, and localities of the Working Group need to focus on improving their disbursement rates, which are currently lower than the national average. He urged them to concentrate on land clearance and ensuring material supplies to achieve the goal of disbursing a minimum of 95% of public investment capital in 2025.

Based on the above, the Deputy Prime Minister directed the ministries, agencies, and localities to continue strictly implementing the resolutions, directives, and telegrams of the Prime Minister and the Government leaders on urging the allocation and disbursement of public investment capital in 2025, focusing on the following contents:

Firstly, it is essential to have a clear understanding of the situation and identify the specific obstacles and reasons for the slow disbursement of each project. This will enable direct guidance and resolution within the scope of authority or timely reporting to competent authorities for resolution, without waiting for the next meeting of the Working Group to report a lack of progress.

Secondly, there should be a strong focus on land clearance and addressing difficulties in supplying construction materials to accelerate the progress of project implementation.

Regarding material supplies, the Deputy Prime Minister assigned the Ministry of Construction and the Ministry of Agriculture and Environment to proactively guide localities. He also encouraged neighboring localities to support each other in ensuring material supplies for projects, allowing the possible transfer of materials from surplus projects to those in need and from localities with excess materials to those facing shortages.

Thirdly, it is crucial to promptly transfer capital from slow-disbursing projects to those with good disbursement progress and capital demands.

Concerning the proposal to extend the validity of capital from 2024 to 2025, the Ministry of Finance has consolidated and reported to the Prime Minister, and the results will be announced soon. However, localities must provide clear explanations for the reasons for the incomplete disbursement and the responsibilities of related parties.

The Deputy Prime Minister emphasized that effective disbursement of public investment capital should go hand in hand with ensuring the quality of projects and avoiding negative issues such as corruption and wastefulness. It is imperative to adhere to procedures and avoid mistakes that could lead to unfortunate consequences.

During the process of merging organizational apparatuses and consolidating provinces, it is necessary to promptly handle incompetent officials who shirk their responsibilities or fail to complete disbursement tasks. Proper handling of the transition of public investment projects during the rearrangement and consolidation of local government apparatuses at the two levels is crucial to ensuring continuity and consistency in project management and implementation, without affecting the disbursement progress.

The Deputy Prime Minister assigned the Ministry of Finance, the Ministry of Agriculture and Environment, the Ministry of Construction, and the Ministry of Justice to coordinate closely with localities in addressing difficulties and obstacles, especially in implementing new legal documents. Localities were advised to closely follow and directly communicate with the ministries and sectors if they encounter any challenges or obstacles.

The ministries, sectors, and localities were held fully accountable to the Government for the results of disbursing public investment capital in 2025, as stated by the Deputy Prime Minister.