Minister of Transport Nguyen Van Thang speaks at the meeting to deploy key tasks in the last months of 2023 of the Ministry of Transport. (Photo: Viet Hung/Vietnam+)
Hanoi (VNA) - With a record amount of allocated public investment capital, Minister of Transport Nguyen Van Thang wants Ministry units to strictly control the disbursement progress. The workload to achieve the target of public investment capital disbursement in the last quarter remains huge.
At a meeting on October 11 to deploy key tasks in the last months of 2023 of the Ministry of Transport, Director of the Ministry's Department of Planning and Investment Bui Quang Thai said the plan has been determined to disburse 95 trillion VND for those projects with completed procedures.
This includes 4.96 trillion VND of foreign capital and 89.18 trillion VND of domestic capital.
The ministry still needs to consult with agencies on the allocation of the remaining 26 billion VND, which comes from collections from land and house arrangements for central ministries and agencies.
Of the total allocated capital, investors and project management units belonging to the ministry will get 86.094 trillion VND (91.5 percent), while other investors (Vietnam Expressway Corporation - VEC, general corporations, provincial transport departments and others) will receive 8,04 trillion VND (8.5 percent).
The North-South Expressway Project Phase 1 has been allocated 17.889 trillion VND (19 percent of the allocation plan), and Phase 2 45.266 trillion VND (48 percent).
ODA (official development assistance) projects have been allocated 7.784 trillion VND (8.3 percent). Key projects will receive 2.259 trillion VND (2.4 percent) and remaining transport projects have received 20.977 trillion VND (22.3 percent), according to Thai.
To date, 1.7 trillion VND worth of public investment capital for 2023 has been disbursed (1.81 percent).
A segment of the North-South Expressway Project for the 2017-2020 period (Photo: Viet Hung/Vietnam+)
Minister of Transport Nguyen Van Thang said the huge disbursement will require creative measures.
The Ministry of Transport (MOT) registered to get 72 trillion VND worth of capital this year, but the government has allocated 22 trillion VND more to the ministry. So, the ministry will have to disburse the huge amount of capital of 94 trillion VND, which is 1.7 times higher than 2022 and 2.2 times that of 2021.
This means that it will have to disburse a whopping 8 trillion VND a month instead of 2.5-3 trillion VND as seen in 2022.
The capital will be mainly disbursed for highway projects, especially the North-South Expressway Phases 1 and 2.
A segment of the North-South Expressway project for the 2017-2020 period has been inaugurated and put into operation. (Photo: Viet Hung/Vietnam+)
Vietnam is taking drastic measures to accelerate the disbursement of public investment in the remaining months, striving to fulfil the disbursement goal to create a driver for economic growth.
Ministry of Finance statistics show that more than 363 trillion VND (14.89 billion USD) was disbursed in January – September, or 51.38 per cent of the plan. This is higher than the disbursement rate registered in the same period last year at 46.7 per cent. In terms of value, the disbursed sum was more than 110 trillion VND higher.
The Vietnamese Government considered public investment disbursement to be among key solutions to achieve the economic growth target in the short term. It also serves to develop a modern and synchronous infrastructure system to improve the competitiveness of the economy and attract investments in sustainable development.
However, the disbursement rates remained disappointing in many ministries, with more than 30 reporting rates of below 30 per cent. This leaves a huge workload in the last quarter to achieve the target of disbursing at least 95 per cent out of 711 trillion VND public investment./.
