The newly-approved Law on Public Investment will help tackle ineffective and wasteful spending in public investments, an economic expert said.

At a conference held in the Mekong Delta city of Can Tho on October 20 to discuss the implementation of the law, Dr Nguyen Thi Phu Ha, Deputy Director of the Ministry of Planning and Investment’s General National Economy Department, said the law set forth rules on institutionalising a process of investment policy approval.

This is a crucial initial step towards deciding the suitability and efficiency of public investment projects and programmes in line with the Party and State’s targets, visions, planning, and development policy, Ha stressed.

She added that the law would also prevent the arbitrary approval of investment projects, simplify the approval process for investment policy, and increase the responsibilities of decision-makers.

Recently, public investment management in Vietnam has shown shortcomings, such as sloppy management and corruption, which are at risk of becoming more serious.

The new law sets out specific regulations, from developing plans to assessing and approving investment projects, thus promoting management and ensuring transparency in the use of State resources, as well as enhancing anti-corruption efforts and financial caution in investment and construction.

The law, which was adopted by the National Assembly on June 18, 2014, will take effect from January 1, 2015.

It comprises six chapters with 108 articles, stipulating the management and use of public investment capital; state management of public investment; and the rights, obligations and responsibilities of agencies, organisations and individuals with regard to public investments.-VNA