Public investments: 100% payout by 2025 for economic growth!

Public investments: 100% payout by 2025 for economic growth!

On May 20, 2025, Prime Minister Pham Minh Chinh unveiled a major initiative affecting public investment capital at a conference. He called for a full payout of 100% by the end of 2025, instead of the previous target of 95%. Vietnam.vn reports that this measure is intended primarily to support the economy in times of inflation, weak purchasing power and unstable export markets. The results of the capital payment are used as the basis for assessing the performance of employees' tasks.

The Prime Minister underlined the responsibility of ministries and municipalities by emphasizing that the level of disbursements measures the management capacity of those responsible. In particular, those who do not comply with the new plan should be checked. To address possible “bottlenecks,” the government plans to reform hindering factors such as slow site clearance and complicated procedures. This comes as part of the introduction of the revised Public Investment Law (No. 58/2024/QH15), which is considered a groundbreaking solution.

Reform of the investment law

During the 8th session of Parliament on Tuesday, deputies discussed the amended version of the Law on Public Investments. VOV World reports that the original law was passed in 2014 and came into force in 2015, but difficulties have arisen in its implementation since then. The change in the law is intended to free up resources for economic development and eliminate existing bottlenecks in public investment projects.

Rep. Hoang Duc Thang from Quang Tri Province stressed that the change helps to institutionalize the views and policies of the party's Central Committee and the Politburo. Furthermore, decentralization should be promoted. This allows all levels, sectors and communities to manage public investments more actively and flexibly.

Support for the local economy

Vinh Long Province has already allocated capital and is advancing the progress of important projects. Public investment capital is seen as “seed capital” for the local economy. The Prime Minister stressed the need to ensure both the progress and quality of projects and to prevent corruption. In addition, the Ministry of the Interior and the Ministry of Finance will review the fulfillment of the tasks for disbursing the capital, especially for the year 2024.

These comprehensive reforms and measures reflect the government's willingness to fundamentally improve public investment policy and thereby strengthen the country's economic resilience. The results of the public investment distribution remain crucial for assessing the level of task completion and the performance of officials during this transformative phase.