Sanctions are set to be imposed on localities that fail to meet this year’s public investment disbursement target, Prime Minister Nguyen Xuan Phuc stated on August 21 during an online conference in Hanoi.

PM Nguyen Xuan Phuc says punitive measures will be imposed on ministries,
sectors and localities if they fail to meet investment disbursement target this year

Addressing leaders of various ministries and localities, PM Phuc recalled that during the previous conference a month ago, the Government had requested ministries and localities disburse VND630 trillion allocated for this year. The Government had also established seven working groups in order to inspect and remove difficulties that occur in investment disbursement for ministries, sectors, and localities. 

PM Phuc cited the latest report by the Ministry of Finance which outlines how the disbursement rate of public investment has made progress, meeting 42% of the annual target. Despite this progress, the PM noted that many ministries, sectors, and localities such as the Ministry of Planning and Investment, the State Bank of Vietnam, in addition to the Vietnam National University in Ho Chi Minh City, have only recorded a disbursement rate of less than 15%.

“Ministries, sectors, and localities must review the allocation of public investment and answer the question of why capital has yet to be fully allocated for projects, especially national target programmes,” PM Phuc said. “We have to seek to disburse the remaining amount, otherwise sanctions will be imposed on localities that fail to meet the target.”

Furthermore, the PM requested an evaluation of investment disbursement for a number of the country’s important projects, including the North-South Expressway, Long Thanh International Airport, the My Thuan-Can Tho Expressway, along with several other key local projects.