Large resources, high investment needs
The planned state budget investment in 2025 is VND 790,727 billion, which, although not yet meeting the demand, is higher than the figure of more than VND 670,000 billion planned for 2024. Of which, the central budget capital is VND 315,000 billion, and the local budget capital is VND 475,727 billion. These are only initial plans, which must be submitted for the National Assembly's approval. However, the general principles for capital allocation have been clearly defined.
Speaking with Lao Dong Newspaper, Associate Professor Dr. Dinh Trong Thinh - an economic expert - said that the Government's planned public investment plan for 2025 of more than 790,000 billion VND is not too worrying because in the coming period, investment demand is very large.
To speed up the disbursement of public investment capital, according to Mr. Dinh Trong Thinh, it is necessary to allocate details to programs and projects from the beginning of 2025. In particular, it is necessary to pay attention to the first stages such as preparing design documents, estimates, etc. Reviewing investment capital for projects early to see if they are suitable and have a scientific and practical basis for implementation. The role of ministries, branches, localities and heads of projects is also very important.
Strive to achieve at least 95% of the public investment disbursement plan
Assessing the reasons why the disbursement of public investment capital by the end of the first 9 months of 2024 only reached more than 47%, Minister of Planning and Investment Nguyen Chi Dung said that the old reasons were still due to problems with site clearance, compensation, land price determination, resettlement policies, avoidance and pushing, plus natural disasters, storms, floods and prolonged rain affecting construction...
"The Government has identified and is strengthening its direction to establish working groups to regularly urge and promote public investment disbursement, striving to achieve at least 95% of the plan," Minister Nguyen Chi Dung affirmed.
Regarding the settlement of long-standing land-related projects, the Minister said that recently, Prime Minister Pham Minh Chinh signed Decision 1250/QD-TTg to establish a Steering Committee to review and remove difficulties and obstacles related to projects.
“The Steering Committee will review the stalled projects that have been on hold for decades. On that basis, it will classify which is the investor's fault and which is the state's fault to find a solution. Ensure the principle of not legalizing mistakes but clearly defining responsibilities to find a way to solve each group of problems. If this can be done, it will unblock the economy. Currently, the Ministry of Planning and Investment has only reviewed 160 projects with 59,000 billion VND, but in reality, there are certainly many more. This time, a nationwide review will be conducted to see how many projects are still stuck in each locality and how much money is left. Clearly classify the main groups of causes, to have solutions to remove each cause" - Minister Nguyen Chi Dung affirmed.
Minister Nguyen Chi Dung added that removing difficulties for shelved projects not only supports businesses but also frees up large capital sources. In particular, it helps increase budget revenue, contributes immediately to GDP growth, removes difficulties for businesses with stagnant capital and creates jobs for people.
According to the Government’s report, the 2025 public investment plan will focus on prioritizing capital allocation for important and key sectors of the economy. Key transport projects and projects that have spillover effects and promote socio-economic development will be given top priority.
