Accelerating Disbursement: A Pivotal Task for the Hinge Year
On the afternoon of October 15th, the Ministry of Finance convened a conference with ministries, sectors, and localities to assess the disbursement of foreign-funded public investment capital for 2025.
 Deputy Minister of Finance Tran Quoc Phuong speaking at the conference – Photo: VGP/HT
|
Addressing the conference, Deputy Minister of Finance Tran Quoc Phuong emphasized: “2025 is a hinge year, holding immense significance in achieving the goals of the medium-term public investment plan, while also contributing to an economic growth rate exceeding 8%.”
According to Deputy Minister Tran Quoc Phuong, this year’s total public investment capital is set at a very high level, with ODA capital accounting for a significant proportion and playing a particularly important role. Accelerating the disbursement of this capital not only ensures project progress but also creates a ripple effect throughout the entire economy. However, the disbursement progress from the beginning of the year, although showing improvement compared to the same period last year, still falls short of expectations.
The Government and the Prime Minister have issued numerous resolutions and urgent directives; the Ministry of Finance has regularly urged, monitored, and guided the removal of obstacles. Nevertheless, the results remain limited, indicating that the “persistent issues” have not been thoroughly addressed.
Deputy Minister Tran Quoc Phuong requested that ministries, sectors, and localities, especially those with large ODA capital volumes, must review and clearly identify the causes, not stopping at mentioning general difficulties such as land clearance or investment procedures. Instead, they need to answer questions like “why land clearance has not been achieved, why bottlenecks have persisted for years without resolution, and must dare to act and take responsibility to create substantial change,” Mr. Tran Quoc Phuong stressed.
Identifying Bottlenecks – Focusing on Substantive Action
Reporting at the conference, Mr. Vu Hoang Nam – Deputy Director of the Department of Debt Management and External Finance – stated that the Ministry of Finance has implemented a series of measures to expedite the disbursement of domestic and foreign loan capital, especially in the context of localities operating under a two-tier government model.
As of October 14th, the disbursement rate of foreign-funded public investment capital reached only 18.68%, equivalent to 4.373 trillion VND. It is estimated that by the end of October, this rate will be around 20% of the plan – significantly lower than the same period last year (30.6% in 2024; 38.1% in 2023).
Out of a total of 108 projects and sub-projects allocated with capital plans, only 72 projects have disbursed funds; the remaining 36 projects have not yet disbursed, including 12 projects that are not yet effective or have not signed loan agreements. Some projects have recently signed loan agreements but have not completed legal procedures.
For the 2024 capital plan extended into 2025, the disbursement rate is only 5.89%. Specifically, ministries and sectors have reached 3%, while localities have achieved 15.02%.
The main reasons, according to Mr. Vu Hoang Nam, are that many projects have not yet completed the volume required for disbursement, or are in the process of adjusting policies, loan agreements, and capital plans. Some projects are delayed in receiving non-objection opinions from donors, or face new procedures after administrative unit mergers.
Additionally, extreme weather conditions, storms, and landslides have caused construction interruptions in many localities.
In response, the Ministry of Finance will continue to closely coordinate with ministries, sectors, localities, and donors to promptly resolve bottlenecks; control and disburse funds quickly upon receiving complete dossiers; and propose solutions to the Government to ensure the completion of the 100% public investment capital disbursement target for 2025.
At the conference, several localities such as Dong Nai, Hung Yen, Tay Ninh, Lai Chau, and Ha Tinh reported their progress and proposed solutions to remove obstacles.
Dong Nai faces slow ODA disbursement due to incomplete loan agreement procedures with foreign partners. The province commits to completing the disbursement plan before the year-end review and requests Central support to expedite the approval of international loan agreements.
Hung Yen cited difficulties in appraising and selecting international consultants for eco-infrastructure projects. Due to high technical requirements, the dossier approval process is prolonged, affecting progress. The project management unit is finalizing procedures and proposes adjusting the capital structure to match reality.
Tay Ninh has achieved positive results but still faces delays in land clearance. Some areas have not been handed over, impacting the construction progress of urban wastewater treatment projects. The locality requests adjustments to the ODA capital plan, shifting a portion to 2026 to ensure progress and efficient capital use.
Furthermore, many localities have requested the Ministry of Finance to support the removal of international agreement procedures and ODA capital disbursement mechanisms to ensure investment progress and efficiency.
 Conference with ministries, sectors, and localities to assess the disbursement of foreign-funded public investment capital for 2025 – Photo: VGP/HT
|
Urgent and Pivotal Tasks Requiring Acceleration
Concluding the conference, Deputy Minister Tran Quoc Phuong affirmed: “The current urgent and pivotal task is to accelerate disbursement, especially for ODA capital. Ministries, sectors, and localities have made significant efforts, but the results are uneven; some units still have low disbursement rates, and some projects have not yet been updated by the Treasury due to delayed submission of documents.”
Moreover, alongside traditional issues like land clearance and project management capacity, there are bottlenecks in procedures for adjusting loan agreements and capital plans.
The Deputy Minister also reminded units to proactively resolve domestic procedures, as the law has strongly decentralized authority. “Whatever falls within your jurisdiction must be done immediately, without citing delays in approval as an excuse,” Mr. Tran Quoc Phuong stated.
Regarding central-level procedures, especially those related to loan agreements, the Ministry of Finance acknowledges the localities’ proposals and will urgently review, respond, and implement actions within its authority. Therefore, localities need to actively coordinate with the Ministry’s units to expedite progress.
Firstly, the Ministry of Finance will continue working with donors to simplify processes. “If procedures are too complex, localities may lose interest in loan capital. We have proposed that donors reduce unnecessary steps to ensure feasibility,” Mr. Tran Quoc Phuong noted.
Additionally, Deputy Minister Tran Quoc Phuong emphasized that the 2026 public investment plan must be realistic, avoiding situations where “large plans are requested and then reduced,” as budget reductions involve complex procedures, possibly requiring National Assembly approval, causing delays and affecting unit credibility.
“Plans must be accurate, ensuring balance and matching implementation capacity,” the Ministry of Finance leader advised.
The Ministry of Finance has also issued Document 15929 on October 14th regarding the notification of the 2026 state budget investment plan, requesting ministries, sectors, and localities to thoroughly review the ability to complete ODA project procedures.
Thus, 2026 is expected to be a period when the two-tier local government system operates stably, domestic procedures are simplified, and the capital withdrawal process at the Ministry of Finance is significantly shortened. “There will be no excuses for delays in implementation and disbursement. The Ministry of Finance will continue organizing conferences, seminars, and training to disseminate and enforce new regulations, supporting localities in ODA capital management and disbursement. Additionally, we will study a separate fund model for receiving and disbursing ODA loans, ensuring progress and transparency for donors,” Deputy Minister Tran Quoc Phuong concluded.
– 08:25 16/10/2025
Finance Minister: Market Upgrade Presents Opportunity to Advance a More Professional Fund Industry
On the morning of October 17, 2025, Minister of Finance Nguyễn Văn Thắng chaired the conference titled “The Role of the Fund Industry in the Development of the Stock Market and Attracting Indirect Investment Capital into Vietnam.”
North Ninh Emerges as the New Investment Hub for Northern Vietnam’s Real Estate Post-Merger
On the morning of October 16th in Hanoi, Vietnam Real Estate E-Magazine, in collaboration with the Vietnam Real Estate Research Institute, hosted a seminar titled “The Golden Opportunity of Bac Ninh Real Estate Following the Expansion of Development Space.”
Elevating Ho Chi Minh City to a Premier Regional Hub in Southeast Asia
Ho Chi Minh City must accelerate the development of its urban rail network to solidify its position as a leading international financial hub, rivaling the major cities of Southeast Asia.
Urgent Update: Payment Details for Retired Officials Under Decree 178
The government has mandated the completion of payments for benefits and policies under Decree 178 and 67 by October 10th. However, as the deadline looms, 14,496 individuals who left their jobs before August 31st have yet to receive their payments. In response, the Ministry of Finance has proposed an extension for the payment deadline.
The New Face of North Central Vietnam’s Premier Growth and Development Hub
In recent years, Nghe An has been making remarkable strides across all fronts, from transportation infrastructure to economic development, steadily solidifying its position as the new growth hub of the North Central Coast region.
