Public investments: Province struggles with delays and risks!

Public investments: Province struggles with delays and risks!

The importance of public investment for socio-economic development is increasingly recognized, especially in the province, which presents an investment plan of approximately VND 6,396.9 billion for 2025. However, as of March 31, 2025, only VND367.5 billion has been paid out, representing a payout rate of just 5.7%. This rate is below the national average of 8.94% and is also lower than the same period last year, which was 15.5%. Slow progress in disbursement of public investments is due to various objective reasons, including newly launched projects and pending management instructions. The entire situation must be urgently improved to avoid necessary cuts, emphasizes Le Van Su, deputy chairman of the People's Committee.

Lam Van Bi also commented on the current situation, calling on all levels and investors to avoid delays. The province plans to conduct a comprehensive review of all projects and their documentation to ensure safe management. The aim is to accelerate the disbursement of public investments in order to achieve the targeted growth of 8% by 2025 and secure double-digit growth rates in the following years.

Challenges and solutions

The decline in investments is observed not only in this province, but also in other regions as well as internationally. In Germany, for example, it has been pointed out for decades that necessary investments in transport infrastructure and digitalization have been delayed. This has led to persistently weak economic development, which includes both economic and structural problems. Current calculations by DIW Berlin show that public investments of over 100 billion euros could increase gross domestic product (GDP) by 1.5 percent over the next four years, which would increase competitiveness.

Structural factors, including demographic change and international competition, are placing a heavy burden on Germany's economy. The share of public investment in GDP has fallen to a low level since 1970, from around 3% until the financial crisis. Although the rate has tended to increase since the financial crisis, the proportion remains worryingly low. This is directly related to the weak production and income development in Germany and highlights the urgent need for action.

Developments in both regions highlight the essential role that public investment plays in stabilizing and growing the economy. It remains to be hoped that the measures now required in the province and in Germany will help secure long-term success and overcome the ongoing challenges.

You can find more information about developments in the province at Vietnam.vn and about the challenges in Germany DIW Berlin.