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Wednesday, June 19, 2024

VND32 trillion of public investment unallocated in Q1

The Saigon Times

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HCMC – Some VND32 trillion of public investment capital had not been allocated for projects in the year to end-March, according to the Ministry of Planning and Investment.

This year, the Government plans to disburse a total of VND657.35 trillion for publicly funded projects.

Delays in public investment capital allocation primarily stem from time-consuming procedures.

Projects requiring approval from the prime minister for a funding extension, or those within the scope of national target programs, face implementation challenges.

The allocation of funds from foreign sources has also been stagnant due to incomplete procedures, pending approvals, and complications in equipment valuation and procurement processes.

Infrastructure projects, particularly in regions such as the Mekong Delta and the south of the country, lagged behind schedules due to a sand shortage for road foundation filling, leading to construction delays.

Minister of Planning and Investment Nguyen Chi Dung said accelerating capital disbursement would be the key to driving economic growth this year.

Despite a positive trend in disbursement in the first quarter, substantial disparities persist among agencies and localities in meeting disbursement targets, warranting immediate attention, he added.

In the first quarter of this year, public investment disbursement reached nearly VND89.9 trillion, representing 13.67% of the Government’s full-year plan.

While four central agencies and 23 localities achieved high disbursement rates of over 20%, there are still 38 central agencies and 26 localities with disbursement rates below the national average, with 15 of them having yet to disburse any funds.

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