Hanoi expected to disburse 90% of public investment plan in 2022

Hanoi is expected to disburse 90% of the VND51.58 trillion (US$2070 million) worth of public investment funds allocated to the city by the Government this year.

Vinh Tuy Bridge phase 2, one of Hanoi's key public projects currently under construction. Photo: The Hanoi Times

This is an optimistic public investment scenario for Hanoi in 2022, assuming the city fully disburses VND1.75 trillion ($70.4 million) from the Land Development Fund for the Ring Road No. 4 project.

In a less favorable case, Hanoi is expected to end 2022 disbursing 82.6% of the allocated fund.

The city attributed several factors to the slow implementation progress of public projects, with site clearance seen as the most challenging issue.

“The local authorities are facing difficulties in identifying land origins, prices, and inability to reach a consensus with affected households in the compensation plans,” stated the city’s report.

Meanwhile, the increase in construction costs has also led to an adjustment in the project fund, which in some cases has even exceeded the total capital investment.

“The complicated procedures have directly impacted the construction and disbursement progress,” it added.

In addition, the emergence of the Covid-19 pandemic has worsened the situation with rising prices of input materials and disruption of supply chains.

A recent directive issued by Prime Minister Pham Minh Chinh emphasized that a high rate of disbursement of public funds remains an essential task for Vietnam's socio-economic development, including achieving an estimated GDP growth of around 8% this year.

Data from the Ministry of Finance revealed that as of October, the total amount of public funds disbursed stood at VND293 trillion (US$11.8 billion), or 51.34% of the year’s target.

Ensuring high public investment performance in the coming months, therefore, requires greater responsibility from leaders in agencies, units, and localities in this regard.

Allocating $1.9 billion for public investment in 2023

For 2023, the Government assigned a public investment target of VND47 trillion ($1.9 billion) for Hanoi. Of which, the city is set to allocate VND15.7 trillion ($631.8 million) for city-level projects.

In addition, an estimated VND1.75 trillion ($70.4 million) would be provided for public projects under national development programs. Of the amount, VND1.71 trillion ($68.8 million) is earmarked for the construction of new-style rural areas with 125 projects; and VND38.5 billion ($1.55 million) in eight projects to promote the socio-economic development of ethnic minority groups.

The city is expected to allocate VND4.37 trillion ($175.8 million) for districts in infrastructure development projects in areas near landfills and cemeteries; and 81 economic infrastructure projects worth VND1.22 trillion ($49 million).

In 2023, the city would focus on key projects including the Hanoi Children Hospital-Phase 1, the Children Palace, the Yen Xa Wastewater treatment plant; and the Soc Son waste treatment complex Phase II.

Overall, Hanoi is set to need VND321.14 trillion ($13.6 billion) for the five-year public investment plan in the tenure 2021-2025, of which VND62.3 trillion ($2.64 billion) was allocated for the 2021-2022 period, or 26.5% of the total.

Hanoi’s priority order for investment would be aligned with the vision for the development of the transport sector and socio-economic infrastructure, namely ring road No.2.5, ring road 3, ring road 3.5, ring road 4; major bridges crossing the river (Vinh Tuy bridge Phase 2, Thuong Cat bridge); inter-provincial roads (national road 6, upgrading national road 32, national road 1A, 21B); and urban railway projects.