VGP – Prime Minister Nguyen Xuan Phuc presides over the national video-conference to seek solutions to slow disbursement of public investment. 

Prime Minister Nguyen Xuan Phuc. Photo: VGP

 Public investment accounts for 10.7% of GDP and 32% of total investment capital in 2019, according to Prime Minister Phuc.

Slow disbursement could hinder economic growth, undermine trust of investors and  donors, cause huge wastefulness, and increase investment costs, the Government chief frankly pointed out.

Disbursement varies from ministry to ministry and locality to locality, in which many ministries and localities have extremely low rate, from 10%-15% in the first nine months, he said.

Only seven ministries, agencies and 14 localities disbursed above 70% of capital, Phuc added.

According to the Ministry of Planning and Investment, obstacles leading to low disbursement rates include current regulations on public investment.

Many ministries, agencies and localities are still confused in application of new provisions of the Laws on land, construction, bidding, and environmental protection.

Meanwhile, it takes a long time for site clearance, approval of work designs and estimated amount of investment capital, and selection of contractors.

In addition, allocation of capital has not met the real progress of investment projects, the ministry reported.

ODA projects, there have been numerous shortcomings in project preparations, leading to low readiness, said the ministry./.