At a conference on accelerating public investment disbursement on 22/6, Finance Minister Nguyen Van Thang reported that by 20/6, ministries, sectors, and localities had allocated 818,600 billion VND for public investment, equivalent to 99.1% of the plan assigned by the Prime Minister. Disbursement is estimated to reach approximately 264,800 billion VND (32.06%) by 30/6, surpassing 2024 figures in both value and percentage.

Of this amount, central budget disbursement reached about 88,500 billion VND (25.27% of the plan), lower than the same period last year. Local budget disbursement reached approximately 176,300 billion VND, or 37.06% of the Prime Minister's assigned plan, exceeding the same period in 2024.

However, the minister acknowledged that achieving the 100% disbursement target is a "major challenge." As of June, only 8 central ministries and agencies and 37 localities had disbursement rates above the national average. The remaining 58 central ministries, agencies, and localities had disbursement rates below the national average.

Thang pointed out several contributing factors: difficulties in the supply of construction materials and price increases; limited capacity of some investors, contractors, and project managers; and weak capacity of some contractors leading to slow construction and contract termination (reported by six localities).

Meanwhile, 11 ministries and localities reported impacts from streamlining administrative apparatus, halting new project starts, and project adjustments due to organizational restructuring. Other factors include site clearance, human resources, electricity, unit prices, norms, planning, boundary demarcation, administrative unit arrangement, official development assistance (ODA), and local budget revenue.

Finance Minister Nguyen Van Thang reports at the conference on public investment, 22/6. Photo: VGP

Finance Minister Nguyen Van Thang reports at the conference on public investment, 22/6. Photo: VGP

Construction Minister Tran Hong Minh pointed out that public investment disbursement in some localities is "fast on paper but not necessarily in reality." After signing contracts, many localities immediately advance 20% of the capital, resulting in a very high disbursement rate in the first month. However, without subsequent work completed, the disbursement rate drops sharply. For example, projects under the Ministry of Construction achieved 40-50% disbursement in the previous two to three years, but this year, due to a decrease in workload, the disbursement rate is slower.

Another reason, according to Minh, is the phased construction process. The initial phase often sees concentrated work, but during the rainy season, smaller, scattered tasks slow down progress and disbursement.

The Ministry of Agriculture and Rural Development was allocated a capital plan of 22,000 billion VND. To date, its disbursement rate, while higher than the national average, is only 32.8%. Minister Do Duc Duy explained that while the Ministry is the investor, localities are responsible for site clearance. However, some localities have changed management levels (from district to commune), leading to confusion in the implementation process.

Hanoi has a 2025 capital plan of 87,130 billion VND and has allocated 100% of it, but cumulative disbursement as of 20/6 only reached 31%. Hanoi Vice Chairman Nguyen Manh Quyen said the city's biggest obstacle remains site clearance, particularly determining land origin and prices. ODA projects face difficulties due to prolonged negotiation, signing, and loan agreement adjustments, typically lasting 12-18 months.

This year, the Prime Minister assigned a state budget investment plan of nearly 829,400 billion VND to ministries, sectors, and localities, equal to 100% of the capital allocated by the National Assembly. The government also aims for at least 8% growth this year, thus requiring full disbursement of allocated public investment, exceeding the previous target of 95%.

Prime Minister Pham Minh Chinh emphasized that public investment plays a crucial role in promoting growth, stabilizing the macroeconomy, and ensuring major economic balances. This also creates a foundation for infrastructure development, stimulating overall social investment, and attracting private and foreign direct investment (FDI).

"This is one of the important growth drivers promoting economic growth, production, business, creating jobs, and livelihoods for people," he said.

Prime Minister Pham Minh Chinh directs the conference, 22/6. Photo: VGP

Prime Minister Pham Minh Chinh directs the conference, 22/6. Photo: VGP

To achieve the target, the Ministry of Finance recommends that ministries and localities strictly implement the government and Prime Minister's directives, focusing on accelerating disbursement of key projects, assigning monthly targets to each investor, and using this as a basis for evaluating task completion at year-end.

Heads of ministries, sectors, and localities must uphold their responsibilities, closely monitor the situation, and directly guide solutions. Localities must implement measures to control the price and quality of construction materials, increase inspections, and strictly punish violations, especially the allocation of material mines to ineligible entities and speculative price increases.

Additionally, stricter discipline, increased inspection, supervision, violation handling, tight control over investment efficiency, anti-corruption efforts, and development of a high-quality workforce for public investment management are necessary.

Hanoi Vice Chairman Nguyen Manh Quyen proposed that the government allow flexible payment mechanisms, planning, and guidance for providing stone and material mines for key projects over the next five to 10 years to ensure supply and stable prices.

Ho Chi Minh City (TP HCM) has been allocated a large amount of capital, accounting for about 10% of the country's total. Its disbursement rate currently stands at 19.4% and is expected to reach 27.1% by the end of June. TP HCM Vice Chairman Bui Xuan Cuong stated that this is a positive result compared to previous years.

To further promote disbursement, the city proposes that the government issue a decision to terminate the loan agreement with KfW (Germany) for Metro Line 2 (Ben Thanh - Tham Luong) and switch to using the city's budget entirely. This will allow TP HCM greater autonomy in disbursement and construction.

Ha Giang is among the 37 localities with disbursement rates higher than the national average, expected to reach 48% by the end of June. Provincial Chairman Phan Huy Ngoc proposed that the government adjust the 2025 central budget capital plan to provide a basis for allocating the entire assigned central capital.

Concluding the conference, Prime Minister Pham Minh Chinh requested ministries and localities to expedite capital allocation and disbursement, aiming for "100% disbursement of the Prime Minister's assigned plan." Heads of ministries and localities must lead with a "focus on action, not retreat" approach, regularly reviewing, urging, and promptly resolving issues for each project, especially key ones. He emphasized that agencies must individualize responsibilities, using disbursement results as a key criterion for evaluating annual performance of organizations and individuals.

The Prime Minister stated that site clearance must be more decisive, involving the entire political system. In implementing the two-level government model and merging provinces and cities, localities need to finalize dossiers and procedures for adjusting or unifying plans, ensuring no disruptions in disbursement flows.

The Ministries of Construction, Agriculture and Rural Development, and provincial and city People's Committees were assigned to focus on resolving issues and ensuring the supply of common construction materials (sand, backfill soil) for projects. Additionally, the Prime Minister's seven working groups and the 26 working groups of government members will continue to monitor, urge, and resolve issues to accelerate public investment disbursement.

Phuong Dung