High Allocation Rates Mask Delays in Key Projects: Unlocking Vietnam’s $30 Billion in Frozen Capital
Vietnam’s Ministry of Finance reports a 2025 public investment plan exceeding VND 1,130 trillion ($48 billion), with VND 902 trillion ($38 billion) allocated by the Prime Minister. By October, ministries and localities had detailed nearly VND 1,034 trillion ($44 billion), achieving a 96.7% allocation rate.
However, VND 29.65 trillion ($1.2 billion), or 3.3%, remains unallocated across 18 central agencies and 27 provinces. This primarily involves supplementary funds from central budget surpluses (VND 23.56 trillion), reallocated capital (VND 3.92 trillion), and unallocated early-year funds (VND 2.09 trillion).
Despite its small proportion, this nearly VND 30 trillion bottleneck triggers cascading issues. The Ministry warns, “Delayed allocation means delayed disbursement—no more waiting.” This risks stalled project launches, year-end payment rushes, cost overruns, compromised quality, and delayed infrastructure and social welfare initiatives.
Experts highlight Q4 as the critical disbursement sprint. Without resolving allocations by early December, year-end pressure risks rushed approvals, echoing past quality compromises.
Untangling the Gridlock: Addressing Chronic Weaknesses to Release VND 30 Trillion
The Ministry mandates urgent procedures, project reviews, and fund reallocation to capable entities. Transparency will increase, with public listings of delayed units to enhance accountability.
High allocation rates mask persistent public investment inefficiencies. Legal and preparatory bottlenecks plague ODA and concessional loan projects, while National Target Programs stall awaiting approvals. Inconsistent project preparation—incomplete designs, impact assessments—further delays allocations, wasting time and resources.
Land clearance remains a chronic issue. Despite ready funds, delayed handovers stall projects, tying up capital. Local capacity gaps in project management and procurement exacerbate delays, particularly in infrastructure-critical regions.
Budget oversight requires strengthening. While delayed units are named, penalties remain weak, and personal accountability is vague. This risks rushed year-end spending, inflating costs and compromising quality.
The 3.3% unallocated figure signals broader public investment inefficiency risks without decisive action.
Experts and the Ministry advocate strict timelines, penalties, transparency, and digital monitoring. Prioritizing high-impact, ready-to-disburse projects is essential, alongside market-based land compensation to expedite clearance.
2025 must mark not just record investment but timely, targeted, and absorptive allocation, ensuring projects launch on schedule and resources drive growth and social goals.
Billionaire Pham Nhat Vuong Sets Unprecedented Record: Vingroup’s Market Cap Surpasses $38 Billion for the First Time
Vingroup, the conglomerate founded by billionaire Pham Nhat Vuong, has made history as the first Vietnamese company to surpass a market capitalization of 900 trillion VND.
Centa Riverside Villa: Seize the Infrastructure Wave in Northeast Hanoi
Amidst the robust infrastructure wave sweeping across Northeast Hanoi, Centa Riverside emerges as a frontrunner in green living and lucrative investment potential, anchored by its enduring pillars of value: prime location and infrastructure, authentic community and amenities, future-proof worth, and fully compliant legal framework.
Government Inspectorate Uncovers Series of Violations at Tràng An Tourism Complex, Ninh Bình
The Government Inspectorate’s conclusion has revealed a series of violations in the infrastructure construction project of the Tràng An ecological tourism area (Ninh Bình province).
Investment Capital Flows Shift Towards Bien Hoa’s Real Estate Market
As investment capital flows into Dong Nai’s real estate market, driven by its synchronized infrastructure and attractive yields, Fresia Riverside in Bien Hoa emerges as a compelling destination for investors seeking sustainable value in the new development cycle.
Vũng Tàu Coastal Townhouses: Prime Business Locations Fueled by Infrastructure Boom
Nestled along a prime arterial road, mere moments from the sea, and seamlessly integrated into a thriving entertainment and leisure ecosystem, the townhouses at Blanca City (Vũng Tàu, Ho Chi Minh City) are emerging as the focal point for savvy real estate investors. Benefiting from a fully developed infrastructure, this urban haven is redefining luxury living and investment potential.
