Provincial Investment Plan 2025: Challenges and Solutions!

Provincial Investment Plan 2025: Challenges and Solutions!

On May 21, 2025, a significant meeting was held in the province, chaired by Tran Hoa Nam, Vice Chairman of the People's Committee. The purpose of this meeting was to evaluate progress on the public capital plan and its implementation. The total capital plan allocated by the Prime Minister for 2025 amounts to a whopping VND 10,095,925 billion, of which the Provincial People's Committee approved VND 8,710,715 billion. There is still an unallocated capital of VND 1,385.21 billion available.

As of early May, over VND1,616 billion had been paid out to the state treasury, representing a payout rate of 16%. This number is higher than the national average of 15.56%. Compared to the actual allocated capital, the payout rate even reaches 18.6%. However, there is cause for concern: 13 units record little or even no disbursement, while 19 units have not registered disbursement plans that meet the province's targets.

Challenges in implementation

The meeting also highlighted problems in 22 projects that are facing difficulties in clearing the construction sites. Tran Hoa Nam urged affected entities to contact the Ministry of Finance directly to find solutions. In this regard, the Ministry of Finance will allocate the payment schedule for June. Entities wishing to apply for additional capital must submit an implementation plan in advance.

Another important point was the cooperation between investors and municipalities. Tran Hoa Nam encouraged both sides to be proactive in clearing the site. In the second week of June, the municipalities should prepare forms for clearing construction sites. In addition, the Ministry of Agriculture and Environment and the Ministry of Finance have agreed to an exchange to develop plans to support the respective districts.

Municipal investment program in Austria

In parallel with the developments in Vietnam, the municipal investment program in Austria was also updated. Amendments to municipal investment laws have been adopted, providing for improvements in the provision of funds to municipalities. These changes came into force and were agreed upon in cooperation between the federal government and the Austrian Association of Cities and the Austrian Association of Municipalities.

The new regulations stipulate that special-purpose grants are converted into financial allocations for investments. This gives municipalities easier access to the funds, as mandatory co-financing is no longer required and the decision on specific investments is left to the municipalities. Applications and statements are no longer sent to the federal government, which reduces administrative work.

As part of the 2025 Budget Accompanying Act, the federal government's planned payments were determined for the years 2025 to 2028. 211.00 million euros are planned for 2025, followed by 320.00 million euros in 2026 and a further 290.75 million euros in 2027. All municipalities will be informed of these changes in a timely manner via a circular.

The developments in both Vietnam and Austria highlight ongoing efforts to optimize investment strategies and promote cooperation between relevant authorities to ensure the effective implementation of projects and better use of the funds provided.

For detailed information about the payout ratio in Vietnam, visit Vietnam.vn, and for more about the municipal investment program in Austria click on bmf.gv.at.