This afternoon (October 15), the Ministry of Finance convened a conference with various ministries, sectors, and localities to discuss foreign-funded public investment disbursement for 2025 and measures to enhance disbursement in the final months of the year.
Deputy Minister of Finance Tran Quoc Phuong emphasized that foreign-funded public investment accounts for a significant portion of the country’s total public investment. While there has been positive progress in disbursement since the beginning of the year, it still falls short of the set targets.
Deputy Minister of Finance Tran Quoc Phuong.
“Achieving 100% disbursement of the 2025 public investment capital is a critical task. To succeed, we must continuously monitor, urge, and accelerate the disbursement process, especially for foreign-funded public investment,” stressed the Ministry of Finance’s leadership.
Mr. Vu Hoang Nam, Deputy Director of the Department of Debt Management and External Finance at the Ministry of Finance, reported that as of October 14, the disbursement rate of foreign-funded public investment by ministries, sectors, and localities had only reached 18.68%. Five ministries, sectors, and localities—the Ministry of Foreign Affairs and the provinces of Lai Chau, Hung Yen, Dong Nai, and Tay Ninh—have yet to disburse their 2025 foreign-funded public investment plans.
By the end of October, the disbursement rate is projected to reach approximately 20% of the allocated capital plan, lower than the same period in 2022, 2023, and 2024, and equivalent to the 2021 disbursement rate. For the extended 2024 capital plan, the disbursement rate has only reached 5.89%. Eight localities and one ministry/sector have not yet disbursed the extended 2024 capital plan.
Despite having allocated capital and completed investment procedures, many foreign-loan projects are experiencing delays in investment readiness, significantly impacting disbursement progress.
Aerial view of the Khe Net Pass railway renovation project. Photo: Nhan Dan Newspaper.
Conference participants noted that land clearance delays and land-related procedural issues are hindering disbursement for several projects, including the Khe Net Pass railway renovation project and the Hoa Duyet – Thanh Luyen section (Hanoi – Ho Chi Minh City route, funded by Kexim), the phase 2 weak bridge renovation and connection bridge project, and the Yen Bai – Lao Cai dynamic urban development project.
Additionally, projects are facing delays in tendering and contract signing, such as the capacity enhancement project for training and research (funded by KOICA, South Korea), the University of Pharmacy construction project, and the Danang University infrastructure project (funded by the World Bank). Some projects require adjustments to investment policies or loan agreements.
Another factor is the merger of localities or changes in the two-tier government model, necessitating revisions to loan agreements, signature confirmations, and account details, as seen in the Ngã Bảy Green Urban Development Project (former Hau Giang) and the Ky Anh Dynamic Urban Development Project (Ha Tinh).
Furthermore, some localities are simultaneously managing the extended 2024 capital plan and the 2025 plan. Natural disasters, storms, and landslides in certain areas have also affected progress.
Representatives from localities that have not yet disbursed foreign-funded public investment provided detailed explanations and proposed reducing this year’s capital allocation.
In Tay Ninh, disbursement progress has been hindered by land clearance issues, with some areas still pending handover, delaying construction. The province suggests adjusting ODA capital allocation between years, reducing the 2025 allocation and shifting it to 2026 to align with implementation capacity.
Hung Yen province representatives stated that their main challenge lies in appraising and selecting international consultants for ODA projects in ecological infrastructure development and environmental resource conservation. Due to high technical requirements, the review and approval process is rigorous, causing delays. The project management unit is finalizing procedures and requests capital structure adjustments to match reality.
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