Deputy Prime Minister Vuong Dinh Hue has asked ministries, sectors, and localities to further hasten the allocation of public investment capital as well as investors to promptly make receving reports and payments.
The disbursement of public investment has remained sluggish over the past three years, thus hampering the progress of projects and the economic growth.
The move came after the disbursement of public investment reportedly slowed down in the first two months of 2019, according to a document sent by the Government Office to relevant ministers, sectors and localities on March 11.
The document interprets Deputy PM Hue’s direction for speeding up the disbursement of public investment set for the whole year.
As many as VND416 trillion (US$18.12 billion) are set for development investment during 2019, according to a plan approved by the National Assembly. So far, Prime Minister Nguyen Xuan Phuc has allocated VND355.6 trillion (US$15.49 billion) to different projects.
Of the total allocated capital, the disbursement rate in the two-month period reached 4.52 per cent, 2.31 times higher than that of the same period last year, said the Ministry of Finance (MoF), noting the ratio remains at a low level.
Ministries, sectors, and localities have to date finalized detailed plans on allocating the public capital for different projects while investors are rushing to complete procedures for bidding, advance payments and others as stipulated in legal documents.
As such, Deputy PM Hue required the Ministry of Planning and Investment to swiftly review whether projects meet conditions for public investment and then submit them to the Prime Minister for approval.
The government official also requested ministries, sectors, and localities to steer investors to quickly complete budget statements and relevant procedures to speed up disbursement and construction.
They were asked to take on concrete solutions aimed to clarify the responsibility of investors and contractors as well as handle shortcomings in relation to slowing disbursement.
Besides, they were required to strictly follow the Government’s Resolution No.70 dated August 3, 2017 on main tasks and measures to gee up capital disbursement, including sending monthly reports on the implementation process to relevant ministries.
The disbursement of public investment has remained sluggish over the past three years, thus hampering the progress of projects and the nation’s economic growth. This was blamed for procedure-related regulations of the 2014 Public Investment Law.
Up to VND263.6 trillion (US$11.48 billion) in public capital were disbursed throughout 2018, equivalent to 65.96 per cent of the National Assembly’s target and 66.87 per cent of the Government’s projected figure, according to the MoF.