HCMC – Vietnam is stepping up public investment disbursement under its recovery and socioeconomic development program as the country is facing challenges in meeting its financial targets.
Data from the Ministry of Planning and Investment showed that as of July, the disbursement rate of the program had surpassed 78%, with only five months left to fully utilize the allocated funds.
Despite the National Assembly (NA) extending the deadline for project implementation and public investment disbursement to the end of 2024, several major projects, including the HCMC Beltway No. 3 and the Hanoi Beltway No. 4, are falling behind schedule.
Meanwhile, the disbursement rate for official development assistance (ODA) and concessional loans remains woefully low, at 12%.
The ministry has identified several factors contributing to these delays, including administrative bottlenecks, land clearance difficulties, and shortages of construction materials.
In 2022, the Government launched a comprehensive recovery program under Resolution 43 of the 15th NA to mitigate the economic impact of the Covid-19 pandemic.
This initiative allocated public investment and mobilized additional resources to stimulate economic growth, with measures such as tax breaks, fee reductions, and rental deferrals to support businesses and individuals.
The program’s focus on financial relief, coupled with efforts to stabilize the economy and control inflation, has played a crucial role in Vietnam’s recent positive economic performance.
