Disbursement playing part in growth goals

August 15, 2023 | 10:34
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Due to solid disbursement in the first seven months of the year, public investment projects are expected to be the driving force of the economy in the remainder of the year as part of efforts to reach annual growth targets.

At the monthly cabinet meeting in July, Minister of Planning and Investment Nguyen Chi Dung said, “The macroeconomy in July and the first seven months are generally stable. The economy kept the recovery trend in recent months and fought for growth momentum, the next month was more positive than the one previous.”

Disbursement playing part in growth goals
Massive motorway and airport projects are being supported, photo Le Toan

Among a series of macroeconomic indicators, he said, public investment spending is one of the most important. By the end of July 2023, the estimated amount was VND267.6 trillion ($11.3 billion), reaching almost 38 per cent of the yearly plan, higher than the same period in 2022 at 34.5 per cent. Disbursement in the first seven months of this year was $3.4 billion higher than the same period last year.

“The disbursement in the first seven months reported so much better on-year, with significant contribution to the economic development in previous months, despite economic woes and uncertainties worldwide and domestically,” the minister said.

So far, 12 ministries and agencies as well as almost 40 local agencies have reported the public spending rate as much higher than the average rate of the country at 35 per cent, including Dong Thap, Tien Giang, Long An, Phu Tho provinces, and the State Bank of Vietnam.

In the Mekong Delta province of Ben Tre, public spending is identified as an important political task. A working group was established at the beginning of the year, and many difficult problems have been solved to help soon achieve the set goals.

“The working group has made the effort to accelerate the distribution of public investment, especially to remove obstacles,” said Tran Ngoc Tam, Chairman of the provincial People’s Committee.

Dong Thap provincial government is also accelerating project processes to try to disburse as much as possible.

“I assigned the Department of Construction as the focal point, together with developers, contractors, suppliers, and site clearance has been implemented quickly,” said Pham Thien Nghia, Chairman of Dong Thap People’s Committee.

Learning during working, the Mekong Delta provinces have become a bright spot in the general picture of the country. Effective distribution of public investment promises to create a big turning point for these localities.

In the second half of the year, distribution of public investment is being speeded up significantly. The road project linking Hoa Binh, Moc Chau, and Son La has so far disbursed 42 per cent of the assigned yearly plan.

The two main challenges in site clearance are adjustments in land use planning, and the conversion of forest and rice cultivation land for other purposes.

“Basically, the survey of all the land in the districts, especially Kim Boi district, has been completed. Currently, the procedures for rice land dossiers have been finished and submitted to the Ministry of Natural Resources and Environment. Dossiers on forest land are expected to be completed and submitted to the prime minister next month,” said Bui Dinh Khoa, director of the project.

Last week, the Government Office delivered a notice on the conclusion of Prime Minister Pham Minh Chinh related to key national works and projects in the transport sector.

The PM highly appreciates the performance of the eastern cluster of the North-South Expressway towards 2025, which has disbursed 86 per cent of the yearly plan, and the provision for the construction of material mines; and completion of site clearance for T3 in Tan Son Nhat International Airport.

To overcome the remaining challenges, the PM asked the Ministry of Planning and Investment together with the Ministry of Transport to guide, support, and accelerate the appraisal of projects.

For ongoing projects, the PM emphasised the need to concentrate resources, organise extra shifts to speed up construction, facilitate mining of construction materials, and penalise weak contractors.

Six provinces are also being considered in regard to upgrading the capacity of licensed sand mines, and submitting construction works, especially for public projects.

“The efforts and high performance on disbursing public investment will contribute significantly to implementing the growth targets set forth this year,” said Minister Dung.

Public investment deemed key driver for economic growth and inflation control Public investment deemed key driver for economic growth and inflation control

Rebounds in retail and consumption services and in the disbursement of public investment are expected to put pressure on the country’s efforts to bring inflation under control this year.

Public investment: a bright spot to propel growth Public investment: a bright spot to propel growth

Public investment has been a highlight of the economy in the first half of this year. Phi Huong Nga, director general of the Industry and Construction Statistics Department under the General Statistics Office, explains why it is the key enabler to drive growth for the rest of this year.

By Hara Nguyen

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