While chairing an online national conference on boosting public investment as a key driver of economic growth in 2025 on May 20, Prime Minister Pham Minh Chinh stressed the need to revitalise traditional growth engines - investment, consumption, and exports, while accelerating new drivers such as science and technology, innovation, digital transformation, circular economy, and knowledge economy.
Prime Minister Pham Minh Chinh on October 8 signed an official dispatch, urging relevant authorities to accelerate the disbursement of public investment in the remaining months of this year.
The northern province of Bac Giang is focusing on removing difficulties to speed up the disbursement of public investment, striving to achieve 100% of the plan set for 2024.
Amidst global headwinds, Vietnam has worked to step up disbursement of public capital to bolster the economy as Prime Minister Pham Minh Chinh has reiterated the significance of public investment disbursement as a motive to fuel economic growth in short term as well as put in place uniform and modern infrastructure to lure more investment for sustainable development.
Prime Minister Pham Minh Chinh has requested ministries and sectors speed up administrative reform and disbursement of public investment, towards promoting economic activities to create jobs and livelihoods for people.
Ho Chi Minh City’s State budget collection has reached its target ahead of schedule, surpassing 392.7 trillion VND (17 billion USD) in the first ten months of this year, up 1.6% from the estimate and 22.3% year-on-year, reported the municipal Statistics Office.
Disbursement of investment capital sourced from State budget was estimated at 48.5 trillion VND (2.13 billion USD) in November, up 14.7 percent over the previous month, according to the General Statistics Office (GSO).
The disbursement of public investment must be sped up in the second half of this year as an important solution to accelerate economic growth amid the COVID-19 pandemic, according to the Ministry of Planning and Investment.
In 2021, the Ministry of Planning and Investment (MPI) will continue to proposing specific policies to remove difficulties and supporting COVID-19-hit businesses and people, according to Deputy Minister Tran Quoc Phuong.
The disbursement of public investment was estimated at 398 trillion VND (17.24 billion USD) as of the end of December, meeting 82.8 percent of the Government’s plan – the highest rate in the 2016-20 period, according to the Ministry of Planning and Investment.
Prime Minister Nguyen Xuan Phuc had a working session with authorities from the northern province of Ninh Binh on July 12 to check the implementation of socio-economic development in 2020, including the disbursement of public investment.
Disbursement of public investment in the first six months of 2020 amounted to nearly 156 trillion VND (6.73 billion USD), fulfilling 33.1 percent of the plan set by the National Assembly and the Prime Minister, higher than the 28.56 percent recorded in the same period last year, according to the Ministry of Planning and Investment.
The building material sector would be among the first to benefit from the Government’s efforts to speed up disbursement of public investment, which was identified as a growth driver as the COVID-19 pandemic cast a shadow on the economy.
A driving force for short-term growth has lost due to the sluggish expansion of public investment, Prime Minister Nguyen Xuan Phuc has said, demanding drastic actions to remove barriers hindering the disbursement of public investment.
Disbursement of public investment was low in the first two months of this year partly due to the impacts of the nine-day Tet (Lunar New Year) holiday, according to a Ministry of Finance report.
In recent years, the Government bond market has become an important capital mobilisation channel for Vietnam. However, the scale of the country’s bond market is modest compared to national economic scale and to other regional countries.
Capital mobilised from the issue of G-bonds in the first eight months of this year was very positive, however, it was quite a contrast to the disbursement of the capital source.
The Prime Minister has asked ministries, agencies, municipal and provincial authorities to submit reports on the disbursement of public investment this year.
