Strong start in Q1

According to the National Statistics Office (NSO) under the Ministry of Finance, the amount of public investment capital disbursed in Q1/2025 was estimated at approximately VND116.8 trillion, equivalent to 13.5 percent of the annual plan and up 19.8 percent compared to the same period in 2024. In Q1/2024, the figure was VND97.6 trillion, equivalent to 12.5 percent of the annual plan, up 3.6 percent compared to Q1/2023.

The disbursement rate of public investment capital in Q1/2025 was the highest since 2022. Specifically, in 2022 and 2023, the rate stood at 12.9 percent; in 2024, at 12.5 percent; and in 2025, it has reached 13.5 percent.

Public investment disbursement in Q1/2025 rose by nearly 20 percent year-on-year

According to Nguyen Thi Huong, Director General of the NSO, this is a very positive signal, demonstrating that strong direction from the Government and early implementation by ministries and localities have started to pay off, with public investment capital gradually being unlocked.

Sharing the same perspective, Phi Thi Huong Nga, Head of the NSO’s Industry and Construction Statistics Department, said that public investment was identified by the Government from the beginning of the year as one of the key growth drivers for 2025. It plays a leading role in boosting aggregate demand, encouraging private sector investment, and mobilizing social resources to support economic growth in the context of global uncertainties and numerous difficulties and challenges facing the domestic economy.

In that spirit, the Government and the Prime Minister have issued many directives to accelerate the disbursement of public investment capital, aiming to disburse over 95 percent of the 2025 public investment plan. Notable examples include Directive 16/CD-TTg dated February 18, 2025, urging ministries, sectors, and localities to speed up the allocation and disbursement of public investment capital in 2025; and Decision 523/QD-TTg dated March 6, 2025, establishing task forces to inspect, supervise, resolve obstacles, and promote the disbursement at ministries, central agencies, and localities.

Realizing 95-percent disbursement goal

Despite positive results achieved in Q1/2025, public investment disbursement remains slow compared to expectations. Without further acceleration, it will be difficult for Vietnam to achieve the 95-percent disbursement target for 2025.

Le Tien Dung from the Ministry of Finance’s Department of Investment pointed out some reasons behind the slow disbursement of public investment. These include shortcomings in mechanisms and policies, especially those related to the Law on Public Investment, the State Budget Law, and related decrees. Additionally, some localities with large budget revenues have not yet been able to allocate their public investment capital.

In 2025, Vietnam targets a 95-percent disbursement rate of public investment to support economic growth

To achieve the 95-percent target and striving for 100 percent as per the Prime Minister’s Directive 32/CD-TTg dated April 5, 2025, Phi Thi Huong Nga recommended that ministries, sectors, and localities focus on several key solutions. These include promptly allocating the 2025 public investment plan to specific projects and works, in accordance with the State Budget Law and the Law on Public Investment.

At the same time, project owners should be directed to immediately implement projects that have been allocated capital plans, and to accelerate the disbursement of investment capital for ongoing and transitional projects.

In addition to these measures, Phi Thi Huong Nga stressed the need to expedite and complete critical and urgent ongoing projects, as well as projects that can be finished within 2025. Project owners should be instructed to handle investment preparation properly, while increasing the accountability of decision-makers at all levels.

Moreover, ministries, sectors, and localities should develop plans to ensure the timely and sufficient supply of construction materials, particularly for nationally-significant and inter-regional transport projects. Ministries must also closely monitor fluctuations in the construction material market, especially those critical to public investment projects. Speeding up land clearance and compensation approvals is another key task.