A street being widened in downtown Hà Nội. VNA/VNS Photo

HÀ NỘI - Data from the Ministry of Finance (MoF) showed that as of the end of September this year, provinces, ministries and government agencies had allocated VNĐ664.9 trillion (US$26.7 billion) for public investment.

That total represents 98.1 per cent of the plan previously approved by the Prime Minister, leaving VNĐ13 trillion unallocated. Of that amount, the government has proposed the National Assembly to relocate VNĐ 8 trillion from ministries, agencies and localities that have so far failed to earmark or disburse the funds, to those with greater needs.

By the end of last month, the estimated disbursements for public investments totalled over VNĐ 320.5 trillion, or 47.3 per cent of the yearly target, significantly lower than the 51.4 per cent disbursement rate recorded during the same period last year.

Of the disbursed funds, domestic sources accounted for over VNĐ315.7 trillion, 47.98 per cent of the year's target, while foreign capital reached nearly VNĐ4.86 trillion VND, or 24.33 per cent of the annual target.

According to the Ministry of Planning and Investment (MPI), 23 localities and 31 ministries and government agencies have failed to meet the national average disbursement rate.

Meanwhile, those praised for their efforts include the Ministry of Agriculture and Rural Development, the Ministry of Transport, the provinces of Yên Bái, Phú Thọ, Thanh Hóa, Nghệ An, Tiền Giang and Long An, and Hải Phòng city.

The MPI has long expressed concerns over the sluggish disbursement rate, claiming it has negatively impacted local socioeconomic targets, as well as national overall development.

For example, HCM City has been allocated VNĐ 79.26 trillion, or 11.7 per cent of the country's entire public investment budget for 2024, but so far has only disbursed 21.29 per cent of the funds.

Similarly, the capital city Hà Nội has been allocated over VNĐ81.03 trillion this year, 12 per cent of the country's budget, but has only disbursed 38.88 per cent of the funds. The northern province of Hưng Yên, which received VNĐ19.92 trillion, around three per cent of the national budget, has disbursed just 31.13 per cent of the funds.

By contrast, other provinces and cities, while receiving significantly smaller funds, have been able to raise their disbursement rate.

The ministry cited various reasons for the delays, including complexities related to land compensation, resettlement and delays in project implementation. To make matters worse, fluctuations in the property market have led to difficulties in auctioning land and collecting land-use fees in localities across the country, resulting in a sharp fall in budget collection. Challenges also remained in disbursing ODA and concessional loans from foreign donors.

However, the MPI said this pattern has been consistent for years, with disbursements remaining low during the early months of the year, only to pick up speed toward the year end.

HCM City and the Vietnam National University in HCM City say the funds allocated to them exceed their capacity to absorb, and they have proposed returning a significant portion to the central government.

Natural disasters, floods, and severe landslides in the northern provinces in recent months have also significantly slowed construction progress, causing many projects to be temporarily halted.

Chairman of the northern Tuyên Quang Provincial People's Committee Nguyễn Văn Sơn said heavy rainfall in recent weeks has put a stop to most construction projects in the province, which posted a disbursement rate of just 40 per cent.

He said, however, the province has not yet adjusted its target to disburse up to 95 per cent of public investment funds by the end of the year.

The Chairman of HCM City's People's Committee, Phan Văn Mãi, said they have been working around the clock to raise the disbursement rate.

"HCM City has only disbursed over 20 per cent of its yearly target, which is very low. However, we have categorised projects, identified solutions and are implementing measures to accelerate the process," he said.

Earlier last month, the Prime Minister instructed ministries, government agencies and local bodies to focus on accelerating disbursement, creating breakthroughs in public investment, and raising the disbursement rate of the three national target programmes to at least 95 per cent.