Unlocking Economic Revival: Expediting Disbursement for Social and Economic Recovery Projects

According to the Ministry of Planning and Investment, the National Assembly has allowed the extension of the implementation and disbursement period for investment capital from the state budget allocated to projects under the socio-economic recovery and development program until December 31, 2024. This means that there are only 5 months left for ministries, central agencies, and localities to disburse the entire capital of the program. The disbursement rate has currently reached over 78%.

With limited time remaining, the Minister of Planning and Investment requested the heads of agencies and localities to focus on directing the removal of obstacles and difficulties faced by projects. In addition, units must report and clarify the allocation and disbursement situation until the end of 2024.

Along with this, ministries, central agencies, and localities are fully responsible to the Government and the Prime Minister in case of delays or failure to disburse the entire capital under the program.

Regarding public investment disbursement, the Ministry of Planning and Investment said that by the end of July, the implementation rate reached nearly 35% of the plan, a decrease compared to the same period last year (37.8% of the plan). There are still 33 ministries, central agencies, and 25 localities with disbursement rates lower than the country’s average. Some projects with large allocated capital for 2024 have low disbursement rates, such as Ring Road 3 in Ho Chi Minh City, Ring Road 4 in the Hanoi Capital Region, Bien Hoa – Vung Tau Expressway, Khanh Hoa – Buon Ma Thuot Expressway, Dong Dang – Tra Linh Expressway, etc. Projects using ODA and preferential loans from foreign donors also achieved only a 12% disbursement rate…

As of July 31, 2024, ministries, agencies, and localities have allocated about VND 26,345.48 billion in investment capital, equivalent to 97% of the plan, and VND 19,678.933 billion in non-business capital, reaching 100% of the estimate for the three National Target Programs. The estimated disbursement of investment capital is about VND 11,841 billion, achieving approximately 44% of the plan.

At the regular Government meeting in July 2024, Minister Nguyen Chi Dung stated that, overall, the country’s economy in the first seven months had recovered relatively strongly in various sectors, achieving many important results, and receiving positive assessments from international organizations and businesses. The macro economy remained stable, inflation was controlled, and the fiscal deficit, public debt, and foreign debt were well managed, according to the Minister.

However, Minister Nguyen Chi Dung also acknowledged that difficulties and challenges remain significant, and growth drivers have not yet shown a strong recovery. Macroeconomic stability still faces potential risks, exchange rate pressure remains a challenge, and non-performing loans are still high, requiring monetary policies to allocate more resources to address these issues.

In addition, while the legal system is being actively improved, there are still bottlenecks and inadequacies that fail to keep up with practical requirements. The livelihoods of a part of the population remain challenging…

One of the key solutions emphasized by the Minister of Planning and Investment is to promote the disbursement of public investment capital, especially in localities with large allocated capital, ensuring the progress of key national projects. It is also crucial to focus on resolving difficulties faced by state-owned corporations and groups, boosting investment in their main production and business sectors, and accelerating the handling of weak banks, specially controlled banks, and struggling businesses or delayed projects…