Dedicated policies driving transport development plans

February 29, 2024 | 15:42
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Based on the disbursement of public investment and construction of transport infrastructure projects in 2023, Tran Quoc Phuong, Deputy Minister of Planning and Investment, points out solutions to accelerate spending in 2024 as a driving force for economic growth.

What lessons can we take from the success of public investment spending in 2023 into this year?

Dedicated policies driving transport development plans
Tran Quoc Phuong, Deputy Minister of Planning and Investment

In 2023, disbursement of public investment capital was estimated at 95 per cent of the yearly plan, and the value was nearly $28 billion, the highest ever and over $6 billion higher than 2022.

Over the past year, we have been halting scattered and fragmented investment to concentrate on large projects, highways, and interregional road for infrastructure breakthroughs throughout the nation. Specifically, 60 target programmes in 2011-2015 were cut down to 21 programmes in 2016-2020, and only three national target programmes for 2021-2025. About 12,000 projects using the central budget in 2016-2020 were cut to less than 5,000 projects in this period, contributing to implementing the goal of about 3,000km of highways by 2025 and 5,000km by 2030.

Public investment has also been helping to attract investment from non-state economic sectors, creating a driving force for economic growth and industry.

Institutions receiving public investment continue to be amended and supplemented to remove obstacles and create a legal framework for new issues, such as the national master plan for 2021-2030, the Law on Tendering, a resolution on piloting specific policies to develop Ho Chi Minh City, and decrees related to public investment to remove obstacles and release resources.

The capacity of most production and service industries and socioeconomic infrastructure has been improved, which has made significant contributions to promoting economic growth and ensuring social security. About 1,900km of expressways has been opened, contributing to economic and tourism development.

To implement the 2024 public investment plan, we need innovation, political determination, and greater responsibility from all sectors. The first requirement is to identify public investment as a top priority. That is why some authorities disburse capital very well, while others fail. It is also necessary to regularly review and remove problems in projects.

How will public investment in important infrastructure projects, such as highways, and airlines, contribute to economic development and regional connectivity?

Over the last 10 years, the Ministry of Planning and Investment has advised allocation of more of the state budget to the transport sector, accounting for just over half of the total central budget investment expenditure. The Ministry of Transport has allocated nearly $12.5 billion in the central budget, the highest amount of all central and local ministries and agencies.

Last year, a dozen North-South expressway projects began simultaneously, nine projects were inaugurated in the middle of the year, and four traffic projects were simultaneously inaugurated at the end of the year.

Almost 500km of expressways was put into use in 2023 too. Last year, construction started on three east-west axis highways, two ring roads, the Tuyen Quang-Ha Giang highway, terminal T3 at Tan Son Nhat International Airport, and Long Thanh International Airport, while My Thuan 2 bridge, Vinh Tuy 2 bridge, and many other traffic projects opened.

When ventures such as these are accomplished, a closed transportation and motorway network will be formed, improving the regional connectivity and economic prospects of the entire country.

How do you assess the growth of the driving forces of investment, exports, and consumption in 2024?

The government will prioritise these three areas this year. There were many achievements in free trade agreements, foreign affairs, and economic diplomacy in 2023. Vietnam has already upgraded comprehensive strategic partnerships and strategic partnerships with all permanent countries on the UN Security Council and G20 to strengthen cooperation, markets, foreign investment, green finance, and technology.

Last year, growth was among the highest globally, the macroeconomy is stable, and major balances are guaranteed. This all provides momentum to implement new goals and solutions in 2024.

Moreover, fundamental factors like institutions, infrastructure, human resources, science-technology, and innovation are continuing to be improved, while fresh laws on land and housing are also on the way.

National, regional, and provincial planning work has been completed, and many strategic infrastructure projects and works have been put into operation, as mentioned.

Many complexities, especially legal issues of businesses, ventures, public investment, state budget, construction, and bidding have also been solved, while reform of administrative procedures and improvement of the business environment are ongoing.

Paving the way for a successful 2022 Tackling slowing public investment for good of nation Setting a strong impression for socioeconomic advances Dynamism part of growth ambitions

By Quoc Phuong

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