Vietnam needs to disburse $10 bln public investment in 35 days

Vietnam’s central agencies and local governments are under pressure to disburse VND247 trillion ($10.18 billion) worth of public investment funds, or 35% of the full-year target, in the remaining 35 days of this year, to hit their annual goal.

Prime Minister Pham Minh Chinh made the request on speedier disbursement at a government meeting on Monday as public investment is considered a key economic driver amid a decline in exports and lackluster domestic consumption.

According to data from the Ministry of Planning and Investment, as much as VND461 trillion ($19 billion) has been disbursed since the start of this year, meeting 65% of the yearly plan, rising from the 55% recorded as of end-October. The figure is VND122.6 trillion higher than the same period last year.

However, 41 ministries and central agencies and 24 provinces disbursed just VND125 trillion ($5.14 billion) between January and November, fulfilling 44.12% of the prime minister-mandated plan, and far below the national average.

Lack of capability in the execution is the main cause for this sluggishness, said the Ministry of Planning and Investment report. Other reasons are institutional hurdles, unclear policies, and an increase of VND130 trillion ($5.35 billion) in this year’s plan against 2022.

In the face of this situation, PM Chinh asked heads of government agencies and localities to clarify responsibilities of incapable executors or replace them.

He hastened stronger efforts to make at least 95% of public investment funds disbursed this year, or around VND676 trillion ($27.8 billion).

Vietnam is accelerating construction of major transport projects such as Long Thanh International Airport and North-South Expressway to boost economic activity and economic growth.