Public investment plays a leading role
Talking with Lao Dong, Dr. Nguyen Minh Phong - an economic expert - the event of simultaneous groundbreaking, inauguration and technical opening of 234 works and projects clearly demonstrated the Government's determination to create a foundation for double-digit economic growth. When a large amount of investment capital is put into the economy at the same time, public investment will promote its leading and activating role in private investment, expanding production, creating jobs and increasing income. Accelerating the completion of strategic infrastructure will improve the capital absorption capacity of the economy, creating new room for rapid and sustainable growth.
Dr. Nguyen Tri Hieu - an economic expert also assessed that the simultaneous groundbreaking, inauguration and technical traffic opening of 234 works and projects spanning many key areas such as transportation, energy, healthcare... will create a boost for public investment disbursement.
"With such a large scale of capital and a large number of projects, it will certainly be a strong driving force for the economy. These are key projects that the country is in great need of to promote growth, especially in the context of Vietnam setting a GDP growth target of 10% or more in the coming time - Dr. Hieu emphasized.
The unblocking of bottlenecks in procedures, site clearance and investment preparation shows that the capacity to organize implementation and the quality of institutions and administration has been significantly improved. When many projects are implemented in the same time frame, the requirements for investment discipline, disbursement and capital efficiency are also tightened, thereby creating a movement of emulation on progress and responsibility of ministries, branches, localities and investors.
With an investment scale of over 3.4 million billion VND, public investment will spread as a lever for other drivers, such as helping to increase the added value of the construction, materials manufacturing, mechanical engineering, transportation and logistics industries. Large infrastructure projects often have a huge demand for steel, cement, sand, stone, road asphalt, machinery as well as transportation services and warehouses. This helps many businesses have more orders, maintain and expand production, thereby directly contributing to economic growth and the State budget.
Infrastructure accelerates, connecting expanded areas
The fact that projects are implemented simultaneously in 34 provinces and cities also contributes to strengthening regional linkages and expanding development space. Better infrastructure helps connect economic centers with localities with great potential, thereby reallocating production resources, reducing pressure on large cities and narrowing the development gap between regions.
Not only affecting economic growth, when projects are simultaneously implemented, hundreds of thousands of direct and indirect jobs will be created. Workers in the fields of construction, engineering, transportation, as well as workers in supporting industries will benefit. The increase in workers' income will stimulate domestic consumption, creating a positive spread for the economy.
Dr. Nguyen Minh Phong also noted the possible pressures, such as the risk of inflation, increasing raw material prices, especially the shortage of sand for filling, lack of labor and difficulties in the process of simultaneously implementing many large projects. Therefore, macroeconomic management requires greater efforts to both ensure the progress of each project and stabilize the overall economy.
