Disbursement of Vietnam public funds meets 57% of target in Jan-Sept

The disbursed amount of public funds as of September 30 stood at VND269.2 trillion (US$11.64 billion), equivalent to 57.15% of the target set by Prime Minister Nguyen Xuan Phuc at VND471 trillion (US$20.38 billion), according to the Ministry of Finance.

Public investment remains a key solution for Vietnam to boost economic recovery.

The result shows strong improvements in disbursing public funds in the first nine months, especially in provinces and cities, stated an MoF report.

Notably, eight ministries, ministerial-level agencies and 23 provinces/cities reported their disbursement progress exceeded 60% by the end of September, of which, six agencies and six provinces/cities have the disbursement rate of over 70%.

However, the MoF also pointed out 11 ministries and one province which have only disbursed less than 20% of the target amount to date.

Seeing this as a key solutions to boost economic growth amid the Covid-19 pandemic, Prime Minister Nguyen Xuan Phuc has set up seven task forces specialized in speeding up disbursement of public funds, including the official development assistance (ODA) in provinces/cities and government agencies.

According to the MoF, a major issue that slows down the disbursement progress is difficulty in site clearance and resettlement, as local authorities and the people are unable to reach agreement in handing over their land for project execution.

Meanwhile, adjustments to the financing agreements and investment procedures of ODA-funded projects also lead to delays in the construction process, not to mention the Covid-19 pandemic causing difficulties in importing equipment, machinery, and the entry of foreign experts.

To further speed up the disbursement progress, the MoF proposes transferring funds of projects having the disbursement progress of less than 60% of the target to those running at a faster pace, as well as emergency projects to tackle climate change in October.

In a meeting late in August, Mr. Phuc warned officials would face disciplinary measures if their ministries and localities fail to realize their respective disbursement targets of public investment funds for this year.

The PM reiterated the government’s determination to fully disburse entirely the target amount of public funds, adding this is key to boost economic growth during the Covid-19 crisis.

Among measures to boost the disbursement performance, Mr. Dung said both central and local governments would hold monthly meetings to address related issues.

In a meeting with the ADB’s Country Director to Vietnam Andrew Jeffries on September 17, PM Phuc requested the bank’s support in disbursing US$900 million to ADB-funded projects in 2020.