Public investment will focus on key projects: Minister

Public investment was a major driver for economic growth last year in the context of the COVID-19 pandemic. (Photo: VNA)

Hanoi - Public investment will focus on key national projects with important roles in enhancing regional links and creating new drivers and room for economic growth, Minister of Planning and Investment Nguyen Chi Dung has said.

Last year saw the highest public investment disbursement rate in 2016-2020 as the Government identified public investment as a major driver for growth in the context of the COVID-19 pandemic.

The Ministry of Planning and Investment estimated the public investment disbursement rate would reach more than 90 percent of the plan as of the end January 31 (the deadline for disbursement of 2020 public investment), compared to 73.3 percent of 2017, 66.8 percent of 2018 and 67.46 percent of 2019.

There were 17 ministries, central-level agencies and 17 localities with disbursement rates of more than 80 percent as of December 31, 2020. However, 13 ministries and central-level agencies and five localities had disbursement rates below 60 percent.

According to Nguyen Manh Quyen, Vice Chairman of the Hanoi People’s Committee, the capital city disbursed about 40.7 trillion VND worth of public investment or 93 percent of the plan.

Ho Chi Minh City disbursed 31.5 trillion VND of public investment in 2020, 1.7 times higher than 2019, said Le Thi Huynh Mai, Director of the municipal Department of Planning and Investment.

These figures showed that never before was public investment disbursement as quick and strong as in 2020, said Deputy Minister of Planning and Investment Tran Quoc Phuong.

“It is public investment that drove GDP growth in 2020,” he said.

Phuong pointed out that total social investment accounted for 34 percent of GDP and public investment 25 percent of the total social investment, meaning public investment made up about 6-7 percent of GDP.

“Taking into account the impacts of public investment, public investment plays a really important role in growth,” Phuong said.

Despite this progress, speeding up the disbursement of public investment remains a priority in 2021.

Phuong said that the Law on Public Investment No 39/2019/QH14 which took effect from the beginning of this year would help tighten management of the entire process of public investment. In addition, the decentralisation of management would also be enhanced together with increasing accountabilities for higher efficiency of public investment.

With the new regulations, plans for public investment would also be more accurate and practical, Phuong said.

Sums which were failed to be disbursed would be deducted from the medium-term public investment plan, he said.

There were always differences between plans and real implementation but “don’t let the gap be too big,” Phuong said.

In 2021, the ministry will regularly update about the progress of public investment disbursement to give a timely push to the progress, he added.