Unlocking Public Investment: Unblocking the Bottleneck of Land Clearance Procedures

This afternoon (June 7), in Binh Dinh, Deputy Prime Minister Nguyen Hoa Binh and members of Task Force No.1 (according to Decision No. 523/QD-TTg of the Prime Minister) worked with nine localities (Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, and Binh Thuan) to inspect, urge, and resolve difficulties and bottlenecks in disbursing public investment capital in 2025.

Disbursement rate higher than the national average

According to the report presented by Mr. Do Thanh Trung, Deputy Minister of Finance, the total plan for investment capital from the state budget in 2025 assigned by the Prime Minister to the nine localities of Task Force No.1 is VND 56,569.8 billion (including VND 16,705.6 billion of central budget capital and VND 39,864.2 billion of local budget capital).

Currently, three localities, namely Quang Nam, Quang Ngai, and Khanh Hoa, have not fully allocated the plan with a remaining amount of VND 172.1 billion. The reason for the unallocated amount is that these localities no longer need the capital and have requested a reduction to transfer to ministries, central agencies, and localities with a demand for additional capital.

Regarding the disbursement of the plan’s capital in the first five months of 2025, as of May 31, 2025, the disbursement rate of the localities belonging to Task Force No.1 reached 26.7%, higher than the national average (the country’s average reached 24.1%).

Among them, six out of nine localities had an estimated disbursement rate equal to or higher than the national average, including Thua Thien Hue (41.2%), Binh Dinh (36%), Khanh Hoa (30%), Ninh Thuan (27%), Binh Thuan (24.6%), and Da Nang (24%). Three out of nine localities had an estimated disbursement rate below the national average, namely Phu Yen (13.2%), Quang Ngai (20%), and Quang Nam (21%).

Compared to the results of the first four months, the estimated disbursement rate as of May 31, 2025, of the nine localities of Task Force No.1 showed a positive acceleration, higher than the national average. However, according to the reports of the localities, there are still some long-standing difficulties and obstacles that affect the implementation and disbursement of projects.

Specifically, to align with the two-level local government structure, some investment projects and office repairs had to be temporarily halted or are in the process of being reviewed for adjustments in objectives, scale, and necessity, leading to a halt in capital allocation to avoid wastefulness.

In addition, changes in responsibilities, authority, and project management procedures at the local level due to the discontinuation of the district-level government and the establishment of new functional agencies after the reorganization and merger have also prolonged the time for feasibility study report appraisal, basic design appraisal, construction design appraisal, payment, and settlement, affecting the site clearance process for local projects as the district-level units were the main force in implementing land clearance…

Many projects face obstacles in compensation, site clearance, and resettlement, focusing on land origin determination, land price determination, and people’s disagreement with compensation and resettlement options. There are also difficulties in establishing land price frames due to the merger of provincial-level administrative units according to the Land Law 2024…

Moreover, there is a limited supply of construction materials (especially filling soil, sand, and asphalt) due to the simultaneous construction of multiple large transport infrastructure projects. The prices of many materials have also surged compared to the bidding time, leading to increased project costs. Erratic weather and prolonged heavy rains, along with a high risk of landslides in mountainous areas, also cause interruptions in construction, especially for transport projects.

At the meeting, leaders of central ministries and sectors discussed and provided answers to the proposals, recommendations, and opinions of the localities. They requested the localities to continue their strong direction and organization in implementing tasks related to the management and use of public investment capital, including unresolved tasks from the previous period.

At the same time, they urged the localities to actively review and adjust the capital plan from the old district level to the provincial or communal level, ensuring clear legal documents and close coordination between investors and project management boards and relevant departments to guarantee continuity and limit disruptions in implementing and disbursing public investment capital for tasks and projects.

They also emphasized focusing on resolving difficulties and bottlenecks in site clearance, strengthening leadership and direction, and considering compensation and site clearance as a critical factor in project implementation that needs to be addressed to minimize project delays due to land issues.

Accelerating the progress of key national transport infrastructure projects was also highlighted, along with enhancing inspection and supervision and clearly defining the responsibilities and close coordination between levels and sectors to ensure efficient and effective work.

Regarding difficulties related to ODA projects, the managing agencies and project owners need to closely monitor the project implementation progress and adjustments, focusing on promoting disbursement for projects that have completed investment procedures and bidding and contracting processes…

Local government activities must be seamless and continuous

Speaking at the meeting, Deputy Prime Minister Nguyen Hoa Binh acknowledged that the nine localities of Task Force No.1 had a disbursement rate higher than the national average, but he also pointed out the lack of uniformity among the localities, with three out of nine localities having a disbursement rate below the national average.

“I applaud the nine provinces for achieving a disbursement rate higher than the national average, but this should not make us complacent. We are already in the sixth month, and the disbursement rate is nearly 30%, with more than 70% left for the remaining months. This is a significant challenge and demands a tremendous effort from the localities in the last months of the year,” said the Deputy Prime Minister.

With this in mind, Deputy Prime Minister Nguyen Hoa Binh requested that localities that have not fully allocated their public investment capital must calculate and urgently allocate the remaining unallocated portion according to the plan.

At the same time, they must continue to vigorously implement site clearance for projects, as this is the main bottleneck in public investment today. Unblocking this bottleneck requires the engagement of the entire political system, especially in compensation, relocation, and resettlement. In addition to promoting disbursement for ongoing projects, it is also necessary to pay great attention to and focus on promoting projects that are expected to start, especially key projects of the nation and the provinces.

With the upcoming termination of the district-level government, for projects under the management of the district-level authorities, there must be transitional solutions to ensure disbursement and prevent waste and loss.

Deputy Prime Minister Nguyen Hoa Binh informed that the Politburo has directed that, starting July 1, the two-level local government will be operational, so all activities must be seamless and continuous, especially in promoting socio-economic development, disbursing public investment capital, and providing public services to meet the needs of the people and businesses. Therefore, localities should be aware of the continuity and seamlessness of government activities and avoid the “wait-and-see” mindset for the new government. All activities of the government must be uninterrupted…

Notably, Deputy Prime Minister Nguyen Hoa Binh asked the localities to continue implementing the reorganization, merger, and streamlining of the apparatus effectively and to emphasize the selection of leaders and officials for departments that have a significant impact on economic development, growth, and businesses. For communes with key projects of the province and the nation, such as railways and expressways, careful consideration and selection of dynamic, creative, and daring officials who are willing to take responsibility are crucial.

In promoting disbursement and growth, special attention should be given to selecting and screening investment projects and investors, choosing investors with potential, capacity, and reputation in implementing projects and works.

Additionally, Deputy Prime Minister Nguyen Hoa Binh requested the localities to continue paying attention to and allocating appropriate resources to implement programs to eliminate temporary houses, dilapidated houses, and build houses for the poor, people with meritorious services, and workers…