Starting next year, public investment project plans will be formulatedevery two years instead of every year as is currently done, Planning andInvestment Minister Bui Quang Vinh told Vietnam News Agency in a recentinterview.
He said the move is part of efforts torestructure the planning process for public investment projects so thatthey become more efficient and less wasteful.
"TheGovernment's decision has been welcomed as one that will increasetransparency and accountability in the use of public funds, whileavoiding corruption and wastage," Vinh said.
Hesaid the new measure builds on provisions of a prime ministerialresolution issued in February 2011 that was a policy milestone, markingthe nation's switch from a focus on rapid development to a more suitablepace in the context of the world economic downturn that hadsignificantly impacted Vietnam.
The resolution hadeight major areas of focus including curbing inflation, stabilising themacroeconomy, ensuring social security and achieving a rational growthrate, Vinh said.
One of the eight areas listed wasinvestment, with the resolution tightening monetary policy and strictlycontrolling public investment.
"After three yearsof implementing the PM's resolution, our macroeconomy has gradually beenstabilised and inflation has been brought under control," Vinh said.
He noted that in October 2011, the Government issuedfresh instructions on strengthening management and use of State budgetfunds as well as Government bonds in public investment.
"In 2013, ministries, sectors and localities nationwide have donetheir best to continue implementing the instructions. While the problemof fragmented and inefficient investment still remains, the situation ismuch better than it was in the past."
Noting that2014 will be the first year Vietnam introduces the "new publicinvestment mechanism", Vinh said it will possibly prevent corruption andpower abuse through information disclosures throughout the constructionprocess.
The minister said the Government hasalready approved the first two-year (2014-15) investment plan for allministries, sectors and localities nation-wide.
Hesaid that in 2013, up to 96.5 percent of capital investment allocatedfrom the central budget to localities has disbursed to implement the2013-14 plan.
In 2014, this percentage will be evenhigher, an indication the ministries, sectors and localities have allrealised the benefits of the PM's decision, he said.
"I am hopeful that outstanding debts in capital construction willreduce quickly in 2014, reflecting efficient management of publicinvestment."
Other sources
Vinhsaid that as a general rule that applies not just in Vietnam but othercountries as well, State budget funding of public investment will bedownsized in the coming years. Therefore, another important measure thegovernment will introduce soon will aim to mobilise capital forinfrastructure construction and public services from other sources, hesaid.
"We should open a new chapter on non-stateeconomic sectors participating in public investment, particularly theprivate sector."
Vinh said his ministry wascurrently drafting a legal document to promote public-privatepartnership in public investment.
He said the newdecree will try to synthesise provisions of implementation Decree 108 onthe Law on Investment as well as Decision 71 on piloting Public-PrivatePartnership projects.
"In the PPP Decree, we wantthe participation of both State-owned Enterprises (SOEs) and foreigncorporations. This is the most important aspect of the document as wewant to have more human and capital resources to invest.
"When the PPP Decree comes into force, the State Budget will onlyprovide counterpart funds for projects. This is very important decisionin the strategy to mobilise more investment for mid and long-termprojects," Vinh emphasised.-VNA
He said the move is part of efforts torestructure the planning process for public investment projects so thatthey become more efficient and less wasteful.
"TheGovernment's decision has been welcomed as one that will increasetransparency and accountability in the use of public funds, whileavoiding corruption and wastage," Vinh said.
Hesaid the new measure builds on provisions of a prime ministerialresolution issued in February 2011 that was a policy milestone, markingthe nation's switch from a focus on rapid development to a more suitablepace in the context of the world economic downturn that hadsignificantly impacted Vietnam.
The resolution hadeight major areas of focus including curbing inflation, stabilising themacroeconomy, ensuring social security and achieving a rational growthrate, Vinh said.
One of the eight areas listed wasinvestment, with the resolution tightening monetary policy and strictlycontrolling public investment.
"After three yearsof implementing the PM's resolution, our macroeconomy has gradually beenstabilised and inflation has been brought under control," Vinh said.
He noted that in October 2011, the Government issuedfresh instructions on strengthening management and use of State budgetfunds as well as Government bonds in public investment.
"In 2013, ministries, sectors and localities nationwide have donetheir best to continue implementing the instructions. While the problemof fragmented and inefficient investment still remains, the situation ismuch better than it was in the past."
Noting that2014 will be the first year Vietnam introduces the "new publicinvestment mechanism", Vinh said it will possibly prevent corruption andpower abuse through information disclosures throughout the constructionprocess.
The minister said the Government hasalready approved the first two-year (2014-15) investment plan for allministries, sectors and localities nation-wide.
Hesaid that in 2013, up to 96.5 percent of capital investment allocatedfrom the central budget to localities has disbursed to implement the2013-14 plan.
In 2014, this percentage will be evenhigher, an indication the ministries, sectors and localities have allrealised the benefits of the PM's decision, he said.
"I am hopeful that outstanding debts in capital construction willreduce quickly in 2014, reflecting efficient management of publicinvestment."
Other sources
Vinhsaid that as a general rule that applies not just in Vietnam but othercountries as well, State budget funding of public investment will bedownsized in the coming years. Therefore, another important measure thegovernment will introduce soon will aim to mobilise capital forinfrastructure construction and public services from other sources, hesaid.
"We should open a new chapter on non-stateeconomic sectors participating in public investment, particularly theprivate sector."
Vinh said his ministry wascurrently drafting a legal document to promote public-privatepartnership in public investment.
He said the newdecree will try to synthesise provisions of implementation Decree 108 onthe Law on Investment as well as Decision 71 on piloting Public-PrivatePartnership projects.
"In the PPP Decree, we wantthe participation of both State-owned Enterprises (SOEs) and foreigncorporations. This is the most important aspect of the document as wewant to have more human and capital resources to invest.
"When the PPP Decree comes into force, the State Budget will onlyprovide counterpart funds for projects. This is very important decisionin the strategy to mobilise more investment for mid and long-termprojects," Vinh emphasised.-VNA
