Vietnam to raise capital expenditure to U$22.7 billion in 2022

The Vietnamese Government is set to raise its spending on public investment projects by 8.3% year-on-year to VND516.7 trillion (US$22.7 billion), including VND35 trillion ($1.53 billion) from foreign sources.

The construction of Vinh Tuy Bridge Phase 2 in Hanoi. Photo: Thanh Hai

The figures were revealed in a proposal from the Ministry of Planning and Investment (MPI) on solutions to speed up public investment in 2021 and the plan for next year. The amount would cover the preparation and counterpart funds for projects financed by ODA and concessional loans from foreign donors.

“For 2022, the focus would be to enhance efficiency in the spending of public funds and accelerate the progress of national projects, especially expressway, seaports, digital infrastructure, as well as those in fields of innovative startups,” noted the MPI.

According to the MPI, the Government is expected to push for the construction of current coastal roads that has not been finished in the 2016-2020 period, while starting new projects of significance to economic recovery amid severe Covid-19 impacts.

Given the disbursement of public funds in the first eight months of 2021 of around VND245 trillion ($10.76 billion), or 51.1% of the year’s target, the MPI called for urgent measures to speed up public investment, including greater responsibilities on local provinces/cities and ministries on their commitments to realize their respective disbursement goals.

The MPI suggested state budget allocated in 2021 for ministries or localities with a disbursement rate below 60% as of September 30 be transferred to those with projects of high priorities or in need of funds.

The ministry also noted the necessity to push for administrative reform, apply technologies in the public investment process, and intensify post-review after project completion.

Prime Minister Pham Minh Chinh on July 19 signed off a decision to set up a task force specialized in addressing difficulties in investment projects that are facing delays, including those financed by foreign sources, as the Government considers public investment as a key task to ensure economic recovery.

This year, the Government targets to disburse 95-100% of the VND461.3 trillion ($20.2 billion) of public investment funds allocated for 2021, for which the rate should be at least 60% by the end of the third quarter, or VND276.7 trillion ($12.12 billion).