Planned investments: billions for local projects by 2025!

Planned investments: billions for local projects by 2025!

On May 13, 2025, significant adjustments were announced in Vietnam's medium-term public investment plan for 2021-2025. According to Vietnam.vn's information, the adjusted capital source for this plan is a total of 79,188,373,000,000 VND. This includes various sources intended to finance infrastructure projects and other investments.

The financing is divided into several categories. For example, according to Vietnam.vn, VND 22,481,593,000,000 is earmarked for domestic capital investment in basic construction. Another 19,901,840,000,000 VND comes from land use revenue, while lottery revenue contributes 9,000,000,000,000 VND. In addition, VND 2,416,300,000,000 is budgeted from the local budget deficit source and VND 12,500,000,000,000 is allocated for salary reform.

Financing resources and savings

In addition, an investment capital of VND 3,966,964,000,000 is planned for mineral resource utilization projects. In order to optimize the financial situation, annual savings of VND 8,921,676,000,000 are targeted. Revenues from land use and lottery sources amount to VND 5,425,213,000,000 and VND 1,726,263,000,000, respectively. In addition, additional income of VND 1,770,200,000,000 arises from various other sources.

Another key issue is the remaining capital that has been allocated for the period 2021 to 2024 but has not yet been paid out. This amounts to 6,632,622,000,000 VND. The remaining capital of VND72,555,751,000,000 is earmarked for 485 projects and expenditure tasks. The Provincial People's Council has tasked the Provincial People's Committee with implementing the resolution, while the Standing Committee of the People's Council and other bodies are monitoring progress.

Deficits in public finances

In an international comparison, a press release from Destatis shows that the municipalities and social security systems in Germany are faced with a significant increase in their deficits compared to the previous year. In the general public budget, expenditure of 1,513.3 billion euros was recorded in the first three quarters of 2024, an increase of 5.9%, while revenues also increased at 1,405.8 billion euros (+5.1%). Overall, there is a financing deficit of around 108 billion euros (+16.1 billion euros compared to the previous year).

All levels of the public budget, including federal, state and local governments, are running deficits, with the federal government accounting for the largest share of the overall deficit. However, revenue from taxes and parafiscal levies also developed positively and amounted to 1,200.4 billion euros, which corresponds to an increase of 4.3%.

What is particularly noteworthy is that municipal expenditure increased by 10.6% to 286.6 billion euros, while revenues amounted to only 260.6 billion euros, resulting in a deficit of 25.9 billion euros, which increased by 14.5 billion euros compared to the previous year. This shows a worrying trend that is important for both Vietnam and Germany.

The financial strategies of both countries show different approaches to managing investments and public budget deficits, and developments are being followed with interest.