Prime Minister requests $28 bln of public investment disbursed in 2023

Prime Minister Pham Minh Chinh on Tuesday required ministries, state agencies and localities to disburse at least VND675,000 billion ($28.46 billion) in public investment, or 95% of the target, in 2023.

2023 is important in the implementation of the 13th National Party Congress's resolution and the National Assembly's five-year socio-economic development plan for 2021-2025, Chinh told an online national conference on public investment.

The global situation continues to evolve in a very complicated, fast and unpredictable way. Global economic growth has slowed down, inflation is high, while strategic competition among big countries, economic competition, and trade wars are more intense. The military conflict in Ukraine could continue. The impacts of the global Covid-19 pandemic are still severe, he noted.

"Our country is a developing country, the economy is in transition, the size of the economy is still modest, there are still many internal difficulties. On the other hand, the economy is deeply integrated and has a high level of openness. A small fluctuation from the outside can also have a big impact on the inside.

"The situation embodies opportunities, advantages, difficulties and challenges intertwined, but difficulties and challenges overwhelm," the Prime Minister noted.

The government leader said that one of the solutions is to promote public investment as disbursement of public investment is both a resource and a driving force for development. "This is still a heavy task, which is difficult to implement, a matter of concern for many years and many office terms."

Promoting public investment disbursement also contributes to the implementation of a focused expansionary fiscal policy in harmonious and close coordination with the monetary policy, maintaining macroeconomic stability, controlling inflation, promoting growth, and ensuring major balances of the economy.

According to the Ministry of Planning and Investment, this year is more favorable than the previous two years because most of the large public investment projects have completed procedures and been allocated enough capital under the mid-term plan 2021-2025.

But the workload is high as the scale of public investment capital increases by about 23%, or up VND130,000 billion ($5.48 billion), compared to the 2022 plan. It is VND250,000 billion higher than 2021. Unpredictable fluctuations of prices of raw materials and fuel will directly affect construction of contractors, the ministry wrote in a report.