Hanoi (VNA) – The structure ofpublic investment capital in the last few years has changed in line with Vietnam’seconomic re🌜forms, boosting the restructuring of industri🔜es, and regions as wellas balancing socio-economic development and social welfare, said Ministerof Planning and Investment Nguyen Chi Dung.

Presenting a report on the implementation of the medium-term public investment plan for the 2021-2025 period at the National Assembly (NA)'s 6th session onOctober 23, the minister said that about 90% of the total capitalthat the NA had approved to use in the period has been allocated to ministries,central agencies, and localities. The remaining capital was transferred toreserve for the medium-term public investment plan. The NA allowed the Governmentto continue to direct ministries, central agencies, and localities to continuecompleting procedures and approving investment policies. Between 2021 and 2023, the annual publicinvestment plan reaches 59% of the total medium-term public investment plan forthe 2021-2025 period, Dung said. “The shifting of the public investment capitalstructure is associated with the process of restructuring the economy,promoting the restructuring of industries and regions to ensure areasonable correlation between socio-economic development and social security,between industries, fields, localities, mountainous areas, border areas,islands, ethnic minority areas, and other difficult areas,” he said. The ratio of investment capital for socialdevelopment compared to GDP has increased, and the scale of investment capital fromthe state budget increased over the years, the minister added. Investment efficiency across the economyhas increased, and the use of social investment capital in general and publicinvestment capital in particular has improved, Dung said. Up to 52% of total projects funded by the centralbudget's capital approved in the 2021-2025 period have been completed and putinto use.

The minister said that public investmenthas promoted its leading role, attracting investment resources from non-stateeconomic sectors, and creating a driving force for the country's economic growth.

The average disbursement rate of publicinvestment capital in 2021 and 2022 reached 93.56% of the♊ planassigned by the 🔴Prime Minister. In the first nine months of 2023, thedisbursement rate reached 51.38% while the rate of the same period last yearwas just 46.7%.

However, he noted that difficultiesremained regarding the slow issuance of policies and instructions to implementpublic investment projects, or the slow allocation of medium-term capital in the 2021-2025 period. The implementation of public investmentplans in some places is sometimes passive and ineffective. Moreover, thequality of project preparation is still low, survey work and project design arenot good while there are other shortcomings related to site clearance, lengthybidding procedures, and increased prices of construction materials and rawmaterials. Regarding solutions in the coming time, theminister emphasised the need to mobilise investment resources of the economy,with a focus on ensuring state budget resources for planned projects in 2024and 2025. It is also necessary to review and improveinstitutions, policies, legal regulations on public investment, and relevantlaws to promptly remove difficulties and obstacles and improve the efficiencyof public investment, he said./.