Vietnam – GVT Public Investment

Vietnam – GVT Public Investment

On 31 October 2019, VIE GVT requires assessment of public investment rules.

  • VIE GVT required a "comprehensive assessment" of the regulations of current decrees on management of public investment, guiding the 2019 law on public investment.
  • The request is part of the government’s solutions (resolution No. 94/NQ-CP) to quicken disbursement of public investment which has dipped to record low this year.

Background

  • Disbursement rate in the first nine months reached 45.17% of this year’s plan, particularly, disbursement rate of foreign loans was lower, only accounting for 18.8%.
  • Disbursement rate varies from ministry to ministry and locality to locality, in which many ministries, localities have extremely low rate, from 10%-15% during the period.
  • Only seven ministries, agencies and 14 localities disbursed above 70% of capital.
  • Warned that slow disbursement could hinder economic growth, undermine trust of investors and donors, cause huge wastefulness, and increase investment costs.

Tasks

  • Tasked ministry of finance to strengthen supervision, update information about public investment projects/programs carried out by all ministries, agencies, localities in 2019.
  • Must report to the prime minister about the implementation of the law on public debt management and legal documents guiding the implementation of the law in Q4 2019.
  • Ministry will also be responsible for proposing amendments to decree 97/2018/ND-CP on the on-lending of the government’s ODA and foreign concessional loans.
  • Meanwhile, the ministry of construction was assigned to review and further simplify procedures on verification, design approval, grant of construction permits.

Monthly report

  • Also under resolution No. 94, ministry of finance must submit monthly report on progress of public investment capital disbursement (before the 25th of each month).
  • Information on disbursement progress shall be made public via mass media.
  • For projects using ODA and foreign concessional loans, since Oct., it will make public the name of three ministries and ten localities with the lowest disbursement rates.
  • Asked authorities to strengthen inspection of public investment plan implementation.
  • Clarify responsibility of organizations and individuals for obstructing disbursement.