Gov't rolls out measures to speed up investment capital disbursement

Prime Minister Pham Minh Chinh has signed a public telegram rolling out measures to accelerate progress on disbursement of public investment capital in 2021.

Role of public investment capital:

As the COVID-19 pandemic is still evolving complicatedly around the world, faster pace of disbursement of public investment capital is a key solution to economic growth.

The following are some highlights of the telegram:

Disbursement rate:

-- As of July 31, disbursement rate of public investment capital reached 36.71 percent of this year plan compared to 40.67 percent of the same period last year.

-- Disbursement rate of ODA and concessional loans was only 7.52 percent over the period.

-- Ministries, localities with high disbursement rates (above 50 percent): Thai Binh (71 percent), Hung Yen (65 percent), Ha Nam (64.36 percent), Thanh Hoa (61.59 percent), Nam Dinh (58.01 percent), Ha Tinh (55.49 percent), Thai Nguyen (51.33 percent), Viet Nam Bank for Social Policies (67.27 percent), Office of the National Assembly (52.9 percent). Though having placed under social distancing, Bac Ninh, Binh Phuoc, and Tien Giang recorded disbursement rates of 55.37 percent, 52.88 percent, and 50.90 percent, respectively.

-- Ministries, localities with low disbursement rates: Ministry of Information and Communications (0.40 percent); Viet Nam National University, Ho Chi Minh City (0.56 percent); Management Board of Ethnic Villages (0.95 percent), Viet Nam Television (1.17 percent), Viet Nam News Agency (1.19 percent), Ministry of Foreign Affairs (2.57 percent), Viet Nam Academy of Science and Technology (2.67 percent), Viet Nam Farmers’ Union (2.7 percent), Bac Kan (8.37 percent), Quang Binh (15.46 percent), Cao Bang (15.84 percent), Dak Lak (15.86 percent).

-- Agencies with zero disbursement rate: Committee for Ethnic Minority Affairs, Viet Nam Cooperative Alliance, Viet Nam Journalists’ Association, Viet Nam Union of Literature and Arts Associations, Viet Nam Union of Science and Technology Associations, Viet Nam Development Bank, and

Disbursement goal for 2021:

The Government targets to raise the disbursement rate to at least 95 percent this year.

Responsibilities of ministries, agencies and localities:

-- Step up progress on disbursement of public investment capital is one of the central political tasks this year with quality of projects and efficiency of public investments to be ensured.

-- Review allocation of public investment capital to ensure that the capital is injected into feasible projects.

-- Impose strict fines on investors, project management boards, individuals and organizations deliberately hindering progress on capital allocation and implementation.

-- Timely replace incapable cadres and public employees and those committing wrongdoings.

-- Immediately establish special working groups led by Ministers, heads of ministerial-level agencies, and Chairpersons of provincial/municipal People’s Committee to regularly inspect and handle obstacles related to disbursement of public investment capital.

-- Continue reviewing mechanisms, policies and regulations related to public investment for timely amendments and supplementation.

-- 34 ministers and heads of ministerial agencies and Chairpersons of 7 localities with disbursement rate of less than 25 percent must work out concrete measures to resolve low disbursement issue.

-- Localities currently placed under social distancing in accordance with the Prime Minister’s Directive No. 16 focus on completing investment procedures so that investment projects could start immediately once social distancing period is over.

Ministry of Planning and Investment’s responsibilities:

-- Report to competent authorities if accumulative disbursement rate of a ministry/agency/locality only reaches below 60 percent as of September 30. In this case, investment capital will be transferred to other ministries and localities.

-- Submit to the Prime Minister a plan for allocation of public investment capital for 2021-2025 period before August 20. Once approved, it will serve as basis for ministries, agencies and localities to allocate capital to specific projects.

-- Submit to the Government a draft decree replacing Decree No. 56/2020/ND-CP dated on May 25, 2020 on management and use of ODA and concessional loans of foreign donors in order to promptly fix barriers to disbursement.

Ministry of Finance’s responsibilities:

-- Coordinate with relevant ministries and agencies to timely handle obstacles relevant to negotiations, signing of loan agreements, and withdrawal of loans.

-- Make disbursement progress of each ministry, agency and locality PUBLIC.