MARD seeks to disburse public investment

Public investment-funded drainage projects have been vital for the agricultural industry

In the first two months of this year, disbursement in the agricultural sector hit $30.15 million, equal to just over 7 per cent of the target for the year.

Nguyen Hai Thanh, director of the Department of Construction Management under the MARD, told VIR that current issues in the agricultural sector have been divided into those related to policy, compensation, and site clearance to address them more easily.

“We have developed disbursement plans for small and medium-sized projects in each group, and have particular plans for each large-scale project to simplify disbursement for the whole year,” Thanh said.

The MARD has been allocated $419 million of public capital for 2024, including $355 million from the state budget and $64 million from official development assistance (ODA), for nearly 290 projects or component schemes.

"Almost all of these projects are in irrigation and infrastructure," said Thanh. “We will regularly review the implementation of projects using public capital and offer adjustment capital plans for long-delayed projects.”

In particular, irrigation infrastructure is deemed one of the key pillars of national strategy. Investment in irrigation infrastructure and disaster prevention accounts for a large proportion and must contend with climate change adaptation. In addition, spending on emission reduction activities is currently only at 3-5 per cent, mainly in forestry and ODA-funded projects in cultivation and animal husbandry.

Vietnam has built many multipurpose irrigation projects such as those in Lang Son, Nghe An, Ha Tinh, and Bac Lieu provinces. In addition, the Cai Lon-Cai Be irrigation system is considered the largest 'super sewer' in Vietnam. These projects have played a crucial role in controlling water systems for the agriculture sector.

According to statistics published by the MARD, the irrigation infrastructure system has provided an additional 6.5 billion cubic metres of water for agricultural each year. In addition, the active irrigation area has also increased by one million hectares compared to 20 years ago.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said, "We are facing pressure to use the total investment capital allocated for the 2021-2025 period. This year is pivotal for implementing the disbursement of public funds."

The allocated capital for the agricultural sector has increased by 30 per cent compared to the 2016-2020 period, while capital allocated from ODA loans has also doubled. The MARD must disburse $844 million, which means that the total for 2023-2025 is estimated at $2.53 billion.

“To meet these targets, we need to thoroughly resolve the delays in implementation. It takes a lot of time to implement surveys and complete procedures correctly, taking an average of five months. In addition, there are delays related to capital allocation and fluctuations in construction material prices, as well as the weather,” Tien said.

Minister pledges public investment disbursement push The Ministry of Planning and Investment (MPI) is determined to expedite the disbursement of public investment funds this year, while eliminating inefficiencies in investment allocation, with the goal of exceeding the 65.1 per cent disbursement rate of 2023.

Vietnam's steel sector revitalised in 2024 In the early days of January, the domestic construction steel market underwent its first price adjustment as manufacturers collectively raised prices for rolled steel and various reinforced steel types by a common margin of $8.33 per tonne.

The upward wave of steel stock prices Steel stock prices have skyrocketed in 2023 and are projected to continue their strong upward trend in 2024, driven by robust public investments and a flourishing real estate sector that was boosted by the approved Land Law amendment on January 18.

Targets set high for disbursement The government has made drastic directions to accelerate public investment disbursement, with construction of numerous transport infrastructure projects to be implemented around the clock.