Public investment disbursement must reach 95%: PM

Prime Minister Pham Minh Chinh has asked ministries, agencies and localities to ensure that disbursement of public investment capital reaches at least 95% this year.

Speaking at a regular cabinet meeting Saturday, Chinh said the disbursement must be considered a key political task, with the early allocation of the VND33 trillion ($1.3 billion) remaining under the 2024 public investment plan.

“Ministries and agencies must urgently complete and submit to the government for promulgation a decree amending Decree No. 40 guiding the Law on Public Investment,” he said.

While praising results achieved, the PM said several shortcomings and challenges persisted in the socio-economic situation, including macroeconomic management and inflation control pressures.

Production, trading and investment activities of the private sector in some areas were encountering difficulties, with a high number of businesses leaving the market, he noted.

The real estate market continued to struggle, bad debt looked set to increase and implementation of the VND120 trillion ($4.72 billion) credit package for social housing continued to be slow, he noted.

Chinh called for proactive and flexible operation of monetary and fiscal policies; submission of policy recommendations this month on tax and fee exemptions, reductions and extensions to support businesses and people.

“It is necessary to develop stock, corporate bond, real estate and gold markets in a healthy, safe and effective manner; and strictly handle violations,” he said.

Agencies and localities must minimize administrative procedures and promote digital transformation; not cause troubles for businesses and people; facilitate attraction and disbursement of social investment; increase public-private partnership projects; and attract FDI selectively, Chinh said.

They should also strongly promote new growth drivers including regional development linkages, digital transformation, green transition, circular economy, sharing economy, knowledge economy, as well new industries and fields such as semiconductor chips and artificial intelligence, he added.