The State Audit Office of Vietnam (SAV) held a workshop in Hanoi on September 22 to discuss measures to boost the effectiveness of public investment disbursement and the role of State audits.

At the event (Photo: congthuong.vn)

 In his opening remarks, Deputy Auditor General Doan Xuan Tien said the mobilisation and use of public investment is important during the country’s reform and international integration processes.

 Slow disbursement has a negative impact on the economy, as well as the country’s reputation and the trust of investors and sponsors, among others, he said.

 The State audit of public investment projects has exposed a number of shortcomings, he noted, adding that the scale and frequency of the task remain small compared to the requirement to inspect the use of public finances and assets, particularly in the construction sector.

 Hoang Phu Tho, an auditor at the SAV, said that to effectively use public investment, there is a need to review State regulations on investment management and make them more suitable to current circumstances at home and with international practice.

 Vice Chairman of the People’s Committee of Thanh Hoa province Mai Xuan Liem said State audits should prioritise programmes and projects in social welfare, regional development, and natural resources and minerals management, among others.

 Some in attendance said State audit needs to increase its role in boosting the effectiveness of public investment disbursement, in particular via publicly announcing its audit results and naming those in violation of laws.

 Statistics from the finance ministry showed that the State budget sourced public investment disbursement was estimated at total VND45.7 trillion (US$1.97 billion) in July, representing a rise of 51.8% against the same period last year.

 This year the disbursement of public investment totalled VND203 trillion, equivalent to 42.7% of the plan for the full year and up by 27.2% over the same period in 2019.

 Ministries with good growth in disbursing public investment were the Ministry of Transport, VND8.34 trillion, equivalent to 41.6% of the plan for the full year and up 91.7%  against the same period last year. The Ministry of Health disbursed a sum worth VND2.3 trillion, 34.7% of the target and up 36.1%  while the Ministry of Agriculture and Rural Development saw VND1.76 trillion in disbursed capital, 39.6% and 34.1%, respectively.

 Ministers and leaders of People’s Committees of cities and provinces nationwide are required to remove difficulties and promote the disbursement of public investment as well as production, business and consumption.

 Strict punishment will be given to violations and delays causing trouble for businesses and people.

 These requirements are part of a recent document released by Prime Minister Nguyen Xuan Phuc, requesting ministries, sectors and localities to implement tasks and solutions to realise the Government’s “dual goals”, including preventing COVID-19 and ensuring socio-economic recovery, focusing on solving problems and supporting businesses facing difficulties, ensuring social security and people's lives.

 The Government leader urged ministries and localities to solve problems hampering the disbursement of public investment, especially ODA, creating a driving force for economic growth and jobs following the directions of the Party, National Assembly, Government, and Prime Minister.

 The Vietnamese Government targeted to disburse all public investment planned for this year as well as the public investment sums transferred from previous years in an effort to accelerate post-pandemic economic recovery.

 This means that about VND630 trillion must be disbursed this year.

 PM Nguyen Xuan Phuc asked the Ministry of Planning and Investment and the Ministry of Finance from the beginning of August to transfer public capital from ministries and localities which failed to make disbursement to projects which could spend the money.

 The finance ministry’s report showed that about VND160 trillion was disbursed in the first half of this year.