Public investments: Government pushes for faster implementation!

Public investments: Government pushes for faster implementation!

The chairman of the provincial people's committee has called on sectors and municipalities to complete their payment and accounting records and increase the disbursement rate of public investment capital. This call comes in the context of the year 2025, which is considered crucial for the implementation of the 5-year socio-economic development plan 2021-2025. The goal is a 100 percent disbursement of public investment capital, which was previously 95 percent.

As of the end of April 2025, more than VND128.5 trillion has already been paid out, an increase of about VND18 trillion compared to the same period last year. However, the payout ratio of 15.56% in the first four months is lower than the 16.64% last year. Instead, nearly VND8 trillion remains under-allocated, highlighting various challenges.

Obstacles to investment

The slow disbursement of public investment capital is hampered by, among other things, difficulties in compensation, site clearance, inefficient project management and a shortage of construction materials. In addition, Prime Minister Pham Minh Chinh has emphasized the need to improve the efficiency of public investment and strengthen the responsibility of authorities. Many projects are currently behind schedule, resulting in a low payout rate.

In order to overcome these problems, ministries and municipalities should actively exert pressure to reduce obstacles. Particular attention is paid to the responsibility of the heads of local party committees and authorities, who are required to ensure the accelerated implementation of projects. For the province, there are three main reasons for the slow completion of the projects: complicated land procedures, inadequate clearance work and deficiencies in the contractors' accounting documents.

Deadlines for implementation

The municipalities are called upon to complete the land transfer procedures by May 28, 2025 at the latest. The chairmen of the people's committees in districts and cities are responsible for compliance with these deadlines. In addition, projects that have already been completed but do not have billed documents must be coordinated by investors and contractors. All final settlement documents must be submitted to the Ministry of Finance by June 5, 2025 at the latest.

These measures are crucial to create a solid foundation for further steps in socio-economic development. While the government pursues solutions to improve the disbursement of investment capital, implementation and monitoring of the measures remains a key challenge.

For detailed information on investment terms and their impact on economic development, please refer to the comprehensive analysis by the German Economic Institute, such as iwkoeln.de reports. The above challenges and strategies to increase efficiency in public investments are crucial for the country's future economic stability and growth.