Vietnam disburses below 35% of public investment target in 7 months

By Duc Tri
Fri, August 5, 2022 | 12:29 pm GTM+7

Vietnam disbursed VND186,848 billion ($8 billion) of public investment in the first seven months, or only 34.47% of the target set by the Prime Minister for the year.

The figure is slightly less than the 36.71% of the same period last year, Deputy Minister of Planning and Investment Tran Quoc Phuong told a government meeting Wednesday.

The low disbursement rate is a government concern as the country is striving to accelerate public investment to support economic recovery and development post pandemic.

"Slow disbursement is a chronic disease. But in the current context of many difficulties and challenges, it is a painful problem," Prime Minister Pham Minh Chinh said.

A Highway 13 section through Thuan An town, Binh Duong province, southern Vietnam. Photo courtesy of Binh Duong newspaper.

A Highway 13 section through Thuan An town, Binh Duong province, southern Vietnam. Photo courtesy of Binh Duong newspaper.

Localities with good disbursement included Thai Binh (67%), Tien Giang (62%), Hung Yen (61%), Ninh Binh (60%), and Tay Ninh (60%).

Forty one out of 51 ministries and centrally-managed agencies, along with 18 out of 63 localities did not meet the national average. Of these, 17 recorded a rate of less than 10%.

The Covid-19 economic recovery package has disbursed only VND48,000 billion ($2.05 billion) out of VND301,000 billion.

National projects with huge undisbursed capital were site clearance for Long Thanh international airport with VND7,708 billion, or 31.87% of the total; the eastern session of the North-South Expressway with VND185 billion, or 72%; among others.

The Deputy Minister listed three obstacles. First, the projects are in early phases, while the public investment plan for 2021-2025 was only approved in July 2021. Meanwhile, administrative procedures often take six to eight months.

Second, the rising prices of fuel, input materials, and building materials discourage contractors from implementing projects. Shortages of soil and sand for land levelling were another problem.

Third, legal frameworks regarding land, environment, and bidding remain complicated and confusing.

At the meeting, leaders from Quang Ninh and Thai Nguyen provinces, among the ones with best disbursements, shared their experiences of focusing on major projects only.

For example, Quang Ninh focuses on 10 projects only, with a total investment of VND40,000 billion, much lower than 600 public investment projects in the previous five-year tenure. The northern province has disbursed about 58% of the 2022 target.

The northern province of Thai Nguyen has disbursed 59% of the assigned target, by focusing only on key road projects.

Regarding solutions, PM Chinh suggested transferring capital from problematic projects to others, relevant ministries updating their legal frameworks, streamlining administrative procedures, improving discipline, among others.

Comments (0)
  • Read More
Rules need to make public bond issuance outpace private placement: experts

Rules need to make public bond issuance outpace private placement: experts

Vietnamese regulators need to fasten and simplify legal steps to encourage public bond issuances as enterprises usually opt for private placements, say experts.

Finance - Sun, October 2, 2022 | 10:36 am GTM+7

VN-Index plunges to 30-month low

VN-Index plunges to 30-month low

Vietnam’s benchmark VN-Index fell almost 12% in September compared with August, making it the exchange's biggest one-month drop in 30 months.

Finance - Sun, October 2, 2022 | 8:47 am GTM+7

Vietnam welcomes 1.87 mln foreigners, South Koreans in the lead

Vietnam welcomes 1.87 mln foreigners, South Koreans in the lead

Vietnam welcomed 1.87 million foreign visitors in the first nine months of the year, up 16.4 times year-on-year, with South Korea and the U.S. leading the pack.

Travel - Sat, October 1, 2022 | 8:26 pm GTM+7

US firm Molex expands Vietnam facility with solar panel installation

US firm Molex expands Vietnam facility with solar panel installation

Molex, a U.S. manufacturer of electronic, electrical and fiber optic connectivity systems, has expanded its manufacturing facility in Hanoi with solar panel installation.

Industries - Sat, October 1, 2022 | 6:46 pm GTM+7

EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

State-owned Vietnam Electricity (EVN) has asked Trungnam Group to put the 172-megawatt capacity portion without a pricing mechanism of its 450 MW solar farm in Ninh Thuan into the competitive power generation market.

Energy - Sat, October 1, 2022 | 3:54 pm GTM+7

Danish firm Spectre opens third Vietnam factory in An Giang

Danish firm Spectre opens third Vietnam factory in An Giang

Spectre, a Danish maker of functional garments for outdoor sports brands, started operating its $17 million factory in An Giang province Friday, the company’s third in Vietnam.

Industries - Sat, October 1, 2022 | 3:06 pm GTM+7

Foreign firm accountant gets death sentence in $9.6 mln corruption case

Foreign firm accountant gets death sentence in $9.6 mln corruption case

A Dong Thap province court on Friday handed a death sentence to Nguyen Trung Thanh, chief accountant of Filipino-invested Pilmico Vietnam, on corruption charges.

Society - Sat, October 1, 2022 | 2:43 pm GTM+7

Vietnam’s nation brand valued at $431 billion

Vietnam’s nation brand valued at $431 billion

Vietnam has seen the third biggest brand value gain over the course of the pandemic in absolute terms, up $184 billion year-on-year to $431 billion in 2022, says London-based Brand Finance.

Economy - Sat, October 1, 2022 | 11:22 am GTM+7

Jail term reduced to 3 years for former deputy health minister

Jail term reduced to 3 years for former deputy health minister

An appeal court in Hanoi has reduced the jail term for former deputy minister of health Truong Quoc Cuong to three years, from the four years ruled by an instance court in May.

Society - Sat, October 1, 2022 | 11:05 am GTM+7

Fever cools, townhouse, villa segment turns lethargic in major cities

Fever cools, townhouse, villa segment turns lethargic in major cities

Liquidity in the townhouse and villa segment, once feverishly high in both Hanoi and Ho Chi Minh City, has been drying up in recent months.

Real Estate - Sat, October 1, 2022 | 9:50 am GTM+7

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

American energy corporation AES has received in-principle approval from the Ministry of Industry and Trade for its VND50,432 billion ($2.11 billion) Son My 2 LNG-to-power project in the south-central province of Binh Thuan.

Energy - Fri, September 30, 2022 | 9:24 pm GTM+7

Coro Energy operates pilot rooftop solar power project in Vietnam

Coro Energy operates pilot rooftop solar power project in Vietnam

Coro Energy has completed commissioning of its Vietnam rooftop solar pilot project, the UK-based energy firm announced Friday.

Energy - Fri, September 30, 2022 | 6:59 pm GTM+7

VN-Index pulls one back after five losing sessions

VN-Index pulls one back after five losing sessions

Vietnam’s benchmark VN-Index reversed a consecutive five session decline with a six-point gain Friday to close at 1,132 points.

Finance - Fri, September 30, 2022 | 6:30 pm GTM+7

Vietnam’s GDP growth to keep driving southern industrial property market: report

Vietnam’s GDP growth to keep driving southern industrial property market: report

The industrial and logistics market in Ho Chi Minh City, Dong Nai, Binh Duong, Long An, and Ba Ria-Vung Tau will continue to grow in 2022-2023 thanks to Vietnam’s resilient economic expansion, according to Cushman and Wakefield.

Real Estate - Fri, September 30, 2022 | 3:32 pm GTM+7

Vietnam needs bonded warehouses for US cotton imports

Vietnam needs bonded warehouses for US cotton imports

Building a Vietnam bonded warehouse for U.S. cotton would benefit both countries, Vietnam Textile and Apparel Association (Vinatas) chairman Vu Duc Giang said Friday.

Industries - Fri, September 30, 2022 | 3:19 pm GTM+7

Thai giant Central Retail eyes mall investment in Binh Thuan

Thai giant Central Retail eyes mall investment in Binh Thuan

Thailand's Central Retail is seeking opportunities to build malls and supermarkets in Binh Thuan province.

Industries - Fri, September 30, 2022 | 3:05 pm GTM+7