Public investment disbursement hits $10.3 bln, 46.7% of plan

The disbursement of public investment reached VND243,148 billion ($10.25 billion) in the first nine months of the year, or 46.7% of the government's nine-month plan.

Prime Minister Pham Minh Chinh said the figure is below expectations, though it is a 16% increase against the same period last year.

Deputy Minister of Planning and Investment Tran Quoc Phuong said it also reflects the fact that construction is accumulated in the first months of the year for payment to be made in the remaining months.

Only two central agencies and 10 localities had seen disbursement exceed 70% of the plan set by the Prime Minister, while 39 out of 51 central agencies and ministries and 22 out of 63 localities were below the national average of 46.7%, according to the Ministry of Planning and Investment.

As one of the localities with low disbursement, Ho Chi Minh City noted lackluster site clearance as the biggest issue, said HCMC Mayor Phan Van Mai. He noted other problems of high costs of construction deterring contractors from processing and complicated investment procedures.

In its latest World Economic Outlook Update released on September 6, the IMF said that fiscal policy should take the lead in aiding recovery in Vietnam, yet flexibly adjusted to evolving economic conditions.