Ho Chi Minh City, Vietnam’s economic powerhouse, is seeking to accelerate its public investment disbursement following a poor performance in the first two months of this year, which reached just 1% of the year target.
This two-month disbursement of about VND369 billion ($15.7 million) has put the city on full alert given the target for the southern economic hub this year is more than VND70.5 trillion (over $3 billion), with over VND15 trillion from the national budget, and VND55.2 trillion ($2.35 billion) from the city’s budget.
The goal is double that of 2022, and HCMC is planning to disburse at least 95% of the target. Therefore, the city must disburse at least 30% of the public investment every quarter to reach the target.
To this end, HCMC Chairman Phan Van Mai has issued an action plan to speed up public investment disbursement, which includes measures and fines for slow disbursement.
Managers and officials unable to rapidly handle public investment will be replaced and face punishments. The city also aims to cut at least 30% of the time needed to complete paperwork for public investment projects, such as project approval, contractor selection, and approval of estimated investment costs.
For projects facing site clearance problems, developers must be proactive in solving related issues, such as halting projects or adjusting project deadlines. For long-delayed projects, developers must apply for new deadlines.
Most public investment in HCMC aims at key infrastructure projects, such as Ring Road No. 3 with a total investment of VND75.38 trillion ($3.2 billion), the National Highway 50 expansion ($65.2 million), the An Phu Intersection expansion ($144.1 million), and a new road linking Tran Quoc Hoan and Cong Hoa streets and Tan Son Nhat International Airport ($204.03 million).