Mr. NGUYEN DUC LENH, Deputy Director of State Bank - Ho Chi Minh City Branch:
Mr. NGUYEN DUC LENH
Banks meet capital needs well
Large projects and works such as transport infrastructure, energy and electricity, roads, schools, stations, etc. all have the participation of bank credit capital. This capital flow has been and is proving effective, contributing to promoting economic growth, and at the same time having a positive impact on credit growth.
From a macro perspective, when a public investment project is implemented, the capital is absorbed and cash flow is created, which will have a great significance in bringing the intermediate cash flow into the market. With the demand for credit loans of contractors and construction units participating in public investment projects today, the banking industry can fully meet it.
Mr. NGUYEN NGOC HOA - Chairman of Ho Chi Minh City Business Association, Chairman of the Board of Directors of Ho Chi Minh City State Financial Investment Company:
Mr. NGUYEN NGOC HOA
Need to socialize public investment projects
Current public investment projects are all implemented by the state or project management boards. There is a situation of excess money but disbursement bottlenecks due to mechanisms, procedures, and processes, which require synchronous solutions. Agencies, departments, and sectors need to boldly change their approach to project implementation.
The business community is currently very anxious because it must quickly disburse funds for public investment projects to create jobs. Enterprises are willing to guarantee with equity capital but also need support from banks through unsecured working capital financing, secured by the right to recover construction money.
The An Phu intersection project at the eastern gateway of Ho Chi Minh City will start construction at the end of 2022 with a total investment of more than VND3,400 billion. Photo: HOANG TRIEU
Mr. NGUYEN NGOC NGHIEM , Director of Corporate Banking - Vietnam Bank for Industry and Trade (BVBank):
Mr. NGUYEN NGOC NGHIEM
Complete financial solution
For the public investment sector, BVBank provides credit limits based on an overall assessment of the customer's plan and cash flow, with a financing rate of up to 80% of the construction contract value. BVBank offers fixed interest rates from 5.5%/year, helping public investment projects easily manage cash flow and minimize interest rate risks. The Bank is also willing to accept collateral as debt claims from construction contracts with a financing rate of up to 70%. In addition, there is a guarantee issuance policy with a deposit rate of 0% and a credit rate of up to 100%...
Mr. LE BACH CUONG , Head of the Southern Construction Investment Management Department, Department of Construction Investment Management - Ministry of Transport (MOT):
Mr. LE BACH CUONG
Research on alternative materials
Projects in the Central and Northern regions basically do not lack construction materials, but the Southeast and Southwest regions encounter some difficulties, especially the Ho Chi Minh City Ring Road 3 project.
To resolve the issue, the Ministry of Transport has worked with the Ministry of Natural Resources and Environment, proposing to assign targets to localities to prepare material sources to implement projects. It is expected that by September 2024, the source of sand materials in the Southwest region will be resolved. The Ministry of Transport and other ministries have also researched and deployed alternative material sources, including a pilot solution to use expanded sea sand.
MSc. CAO MINH NGHI , Deputy Head of Economic Development Research Department - Ho Chi Minh City Institute for Development Studies:
Master CAO MINH NGHIA
Removing obstacles for development investment funds
There are two solutions to the problem of transport infrastructure funds, including utilizing local development investment funds and establishing a new fund. Utilizing the old fund has the advantage of being quick but is problematic in terms of legality. If a new fund is established, it will be easier to apply new regulations but will be very cumbersome and require many complicated procedures.
Resolution 98/2023 of the National Assembly allows Ho Chi Minh City to use local budget for key inter-provincial transport projects, but only for a few projects, without a general formula.
Ms. TRUONG NGUYEN HIEU , Head of Public Investment Management Department - Department of Planning and Investment of Tay Ninh province:
Mrs. TRUONG NGUYEN HIEU
April 2025, handover of land for Ho Chi Minh City - Moc Bai expressway
Regarding the Ho Chi Minh City - Moc Bai expressway project, the Tay Ninh Provincial People's Committee has assigned the Transport Construction Investment Project Management Board to be the investor of component project 4 for site clearance through Tay Ninh.
Tay Ninh has allocated capital for the project and is preparing the necessary procedures to implement site clearance with a total capital of more than 1,500 billion VND. It is expected that by April 30, 2025, Tay Ninh province will hand over the entire site for the project.
Journalist - Dr. TO DINH TUAN , Editor-in-Chief of Nguoi Lao Dong Newspaper:
Journalist - Dr. TO DINH TUAN
Refer to good practices of other countries
According to analysis by experts and investors, there are currently bottlenecks that need to be resolved in public investment disbursement. Therefore, Nguoi Lao Dong Newspaper decided to choose this topic for the 3rd session of the Vietnam Economic Forum 2024.
It is necessary to recognize that in public investment, the story of "no money then complain, have money then don't spend" is absurd. The problem lies in the mechanism and the way of doing things, which need to be solved to promote economic development, especially in the context of the global economy and geopolitics with external factors. At the same time, it is necessary to mobilize all social resources. It is possible to refer to good practices of other countries, drawing experiences suitable to the situation in Vietnam.
With the determination and enthusiasm of Ho Chi Minh City leaders to promote public investment, it is hoped that from now until the end of the year, this sector will develop more strongly, contributing to the public investment of the whole country, thereby creating a spillover effect for the economy to shift positively.
Source: https://nld.com.vn/dien-dan-kinh-te-viet-nam-2024-phien-thu-ba-thao-diem-nghen-giai-ngan-dau-tu-cong-thay-doi-cach-lam-196240815222055019.htm
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