Hanoi shows improvements in public investment: Deputy PM

Hanoi has shown improvements in the disbursement of public funds, with the disbursed amount to date reaching VND15.32 trillion (US$654.2 million), or 30% of the target and up 3% against August 22.

Deputy Prime Minister Le Van Thanh at the meeting. Photos: The Hanoi Times

Deputy Prime Minister Le Van Thanh commended Hanoi's public fund disbursement efforts during a meeting on August 26 with the local authorities, discussing measures to speed up public investment in 2022.

According to Thanh, a higher disbursement rate of public funds is key to ensuring efficiency and effectiveness of public spending, which would directly translate into economic growth and job creation.

“The completion of public projects is seen as a decisive factor to attract social investment resources,” Thanh said.

Thanh noted the main reason for lower-than-expected disbursement progress was due to the lack of preparation process before the implementation phase; complicated procedures in extending financing agreements for ODA projects; difficulties in site clearance; and ineffective cooperation between agencies in the construction process.

In this context, Thanh applauded the city’s efforts in setting up six task forces specialized in addressing bottlenecks in public investment.

“This has resulted in a positive progress of public investment in August,” Thanh said.

For the remainder of the year, Thanh called for greater determination from the city’s apparatus to reach the disbursement rate of at least 90% by December 31.

“Public projects with high spillover effects would create new driving forces for growth,” he said, urging the city to focus on projects with a high possibility of completion on time.

In addition, Thanh requested the city to review the list of ongoing projects and transfer funds from projects of slow progress to those with higher pace.

Echoing Thanh’s view, Vice Minister of Planning and Investment Tran Quoc Phuong said the ministry is committed to working with Hanoi’s authorities in addressing bottlenecks during the disbursement of public funds.

“The results, however, would largely depend on the active response from the entire political system,” Phuong said.

Overview of the meeting.

Focusing on large projects

At the meeting, Vice Chairman of the Hanoi People’s Committee Ha Minh Hai said in 2022, the city is allocated VND51.5 trillion ($2.2 billion) for public investment, and has disbursed VND13.8 trillion ($589 million) as of August 22, or 27.1% of the target.

“Difficulties in site clearance remain a major issue while rising construction materials have also  delayed  the project execution,” Hai said.

The Vice Chairman, however, expected the process to accelerate in the final months of 2022 as has been the case in previous years.

Director of Hanoi’s Department of Planning and Investment Do Anh Tuan said of the 110 public projects in 2022, 67 are facing difficulties in site clearance, and 23 have not started construction.

“The city would delegate to districts the task of carrying out the site clearance process,” he said.

On this issue, Chairman of the Hanoi People’s Committee Tran Sy Thanh said the city would identify difficulties in each project and mobilize resources for major ones to ensure the highest disbursement rate possible.

In 2022, Hanoi expects around  VND10.2 trillion ($443.2 million) would be assigned to rural and urban districts for developing their respective infrastructure projects, including the construction of new schools, upgrading healthcare facilities, and preserving historical sites, which reflects the city’s attention to supporting the growth at grass-roots levels.

For the 2021-2025 period, the city sets to earmark VND650 trillion ($28.4 billion) for the public investment plan.

The priority order for investment would be aligned with the vision for the development of the transport sector and socio-economic infrastructure, namely ring road No.2.5, ring road 3, ring-road 3.5, ring road 4; major bridges crossing the rivers (Vinh Tuy bridge Phase 2, Thuong Cat bridge); inter-provincial roads (national road 6, upgrading national road 32, national road 1A, 21B); and urban railway projects.