“Excess Funds: The Surprising Reason Behind Low Public Investment Disbursement”

The information was presented at the public investment disbursement meeting for the first nine months of this year, held by the People’s Committee of Can Tho City on the afternoon of October 14. The Can Tho Department of Finance reported that the city was allocated a total capital of over VND 28,800 billion this year. As of October 10, the cumulative disbursement reached only VND 9,500 billion, accounting for more than 33% of the plan, which is lower than the set target.

Mr. Le Minh Cuong, Director of the Project Management Unit for Traffic and Agriculture Construction Investment in Can Tho, stated that this year, the unit was allocated over VND 15,760 billion, with a disbursement of more than VND 5,000 billion to date (equivalent to 32%). The disbursement volume is low, making it impossible to achieve 100% disbursement this year due to excess capital allocation.

According to Mr. Cuong, some projects will extend into 2027, but the entire capital has already been allocated this year, meaning no capital will be allocated in 2026-2027. Specifically, component projects of the Chau Doc – Can Tho – Soc Trang Expressway, which account for a large portion of the capital, have low disbursement rates, dragging down the overall disbursement rate. The main causes of delay are land acquisition issues and weak contractors. The unit has been reviewing and addressing weak contractors, bringing in stronger ones to accelerate construction.

“We commit to speeding up construction once the land is cleared. As for the excess capital, we can only extend the disbursement period. I am prepared to accept disciplinary action, as there’s no other option. The excess capital cannot be returned, and the work cannot be completed due to over-allocation,” said Mr. Cuong. He urged the Land Fund Development Center and local authorities to expedite land clearance for the projects.

Mr. Cuong added that Can Tho has numerous new projects. If they are reviewed as per usual procedures, it will be time-consuming, and new projects may not commence in 2026. Therefore, it is essential to build on previous policies, resolutions, and directives from local authorities to continue the work. Further discussions and studies will only cause more delays, leading to similar disbursement issues next year.

Mr. Truong Canh Tuyen, Chairman of the People’s Committee of Can Tho City, noted that after nine months, achieving double-digit economic growth this year is ‘extremely challenging.’ The disbursement progress is lower than the national average; infrastructure in transportation, healthcare, and education remains limited and deteriorating. Local government operations at two levels are generally stable and smooth, but there are still many difficulties, particularly in specialized personnel.

According to Mr. Tuyen, the limitations stem not only from unresolved issues requiring higher authority approval but also from the impact of implementing the two-level local government system on economic, social, and public investment disbursement tasks. This directly affects land clearance efforts, slowing project implementation and public investment disbursement. Additionally, some officials and leaders have not been proactive or timely in addressing challenges for investors and wards.

The Chairman of the People’s Committee of Can Tho City urged all departments, agencies, and localities to accelerate efforts in the fourth quarter, fostering unity in planning and implementing solutions to address challenges. They should review targets and tasks for each unit to ensure directive execution, striving to fulfill this year’s plan. Departments must support wards, especially key and project-heavy areas, by promptly and effectively handling emerging tasks…