Removing the "bottleneck" of public investment disbursement: Part 1 - "Bottleneck" hindering growth

Việt NamViệt Nam27/02/2025


10:26, 27/02/2025

BHG - Disbursement of public investment capital (PIC) has always been identified by our province as one of the important tasks. By clearly identifying the "bottlenecks" in the process of implementing the medium-term PIC plan for the period 2021 - 2025 to draw experience and synchronously remove solutions, it is creating a driving force to promote economic growth in the "sprint" year.

Part 1: “Bottlenecks” that hinder growth

Right from the first days of the year, to avoid the situation of “being leisurely at the beginning of the year and rushing at the end of the year”, our province has focused on directing and urging the disbursement of public investment capital, determined not to let the situation of “having money but not being able to spend it” happen. However, slow disbursement often recurs, making ensuring the disbursement rate according to plan always a “difficult problem”.

There are many shortcomings

Through practical research, it is shown that the institutions and policies directly related to the implementation of the DTC project are still inadequate, affecting the progress of project implementation. According to regulations, from the time of project formation until the time capital can be disbursed, the implementation organization goes through many stages; corresponding to each stage, the process, order and procedures are subject to the regulation of many laws, depending on the nature of the project such as the Law on Urban Planning, Law on Construction, Law on State Budget, Law on Land, Law on Bidding, Law on Environmental Protection, Law on Tax, Law on Architecture, etc.

Contractor mobilizes machinery to construct Tuyen Quang - Ha Giang Expressway Project Phase 1, section through Ha Giang province.
Contractor mobilizes machinery to construct Tuyen Quang - Ha Giang Expressway Project Phase 1, section through Ha Giang province.

First of all, the projects must be approved in principle as a basis for reporting to the Provincial People's Council for comments, then they will be eligible to be assigned a medium-term capital investment plan; then the project investment decision is made so that departments, branches, units, and People's Committees of districts and cities can assign annual capital investment plans. After being assigned an annual capital investment plan, in order to be able to disburse, the investor carries out the work of planning contractor selection, contractor selection, site clearance, payment, etc. All of these activities are regulated by various legal provisions as mentioned in the laws.

It can be seen that in the field of land, the determination of land classification and land use principles among the laws is not yet unified, leading to difficulties in land recovery and use of the project. Even for the land of the highway rest stop, the decision on which land classification and which land use principles are also unclear. On the other hand, the determination of land prices according to the provisions of the Land Law must ensure the principle: "Consistent with the common land price on the market of the type of land with the same purpose of use that has been transferred, the winning price of the land use right auction for places where there is an auction of land use right or income from land use". However, determining how to be consistent with the common land price on the market is still difficult, there are no specific regulations. This problem leads to difficulties in both mobilizing land use fee revenue for the project and in determining the price for compensation.

In addition, some land regulations do not meet practical requirements, leading to slow site clearance work, specifically: There is a difference between the price of land recovered by the State and the price of land compensated by investors, including the area according to the agreement mechanism, leading to comparisons by people, giving rise to complaints and lawsuits. It is worth mentioning that land management in some places is still loose, public land is encroached by people, the land origin of the recovered plots is not determined; the legal procedures for land recovery in some places are not strict, public, and transparent, leading to complaints and lawsuits by people.

According to Mr. Do Ngoc Thuan, Chairman of the Board of Directors, General Director of Phuong Dong Investment and Development Joint Stock Company: In fact, the current demand for land for filling and construction materials is very large, but the supply cannot meet the demand because the Law on Minerals stipulates that land resources or hill land, land for filling are minerals, while the procedures related to the re-issuance of mineral exploitation licenses according to current regulations are still cumbersome, taking a lot of time for competent state agencies and organizations and individuals who own licenses. These problems lead to a shortage of land for filling, affecting the construction progress and disbursement of capital of projects that do not meet regulations.

In addition, projects that convert the purpose of using rice land from only 1m2 must still prepare an environmental impact assessment report according to the provisions of the Law on Environmental Protection, creating additional procedures for projects, especially for rural transport projects. The work of converting forest land and land use planning to implement projects also faces many difficulties in determining each type of land...

"Bottleneck" not cleared

Meo Vac District People's Committee Hall is being upgraded and repaired.
Meo Vac District People's Committee Hall is being upgraded and repaired.

Disbursement of capital for public investment is not an easy task, that is the opinion of most investors and the reason for slow disbursement is determined to be that the planning of state budget capital investment is not close to the implementation capacity, leading to the situation of "capital waiting for the project to complete the procedures", estimating capital in advance and then proceeding with investment procedures (deciding on investment in projects) or implementing procedures to extend agreements, prolonging the capital allocation time for projects using ODA capital and preferential loans from foreign donors, leading to the situation of proposing to return the capital plan, especially ODA capital and preferential loans from foreign donors. The announcement of construction price index is not timely, not close to the market, causing passivity for investors and contractors.

In addition to the low quality of project preparation, poor survey and project design work, leading to many projects that have been approved for investment policies and investment decisions but are still not eligible for disbursement due to problems with planning, location, land, site clearance, leading to adjustments in unit prices and estimates, changing or readjusting the project..., one reason is that all levels and sectors have not focused on thoroughly handling the difficulties and problems of projects that have been and are being implemented, especially projects to build key transport projects, slow disbursement due to problems with site clearance. Currently, some localities are hesitant in handling procedures related to land, site clearance, investment procedures... affecting the disbursement rate of investment capital.

On the other hand, the capacity of the Construction Investment Project Management Board and professional staff working on investment at all levels, especially at the district and commune levels, is still limited. Although most departments, branches, units, and People's Committees of districts and cities have held regular meetings, investors have not proactively proposed to competent authorities fundamental solutions to remove difficulties and specific problems for each project assigned to them. Some departments, branches, units, and units managing the field have responded in general terms, without going into detail and specific recommendations from the locality; the mentality of officials and civil servants is that when encountering even small problems related to the project, they stop or do things at a slow pace.

According to comrade Luong Van Doan, Director of the Provincial Construction Investment Project Management Board: The biggest difficulty causing slow disbursement of DTC capital is that the land acquisition costs of projects have not been resolved in a timely manner, bidding procedures are prolonged, prices of raw materials, fuel, and construction materials have increased and are scarce; resettlement plans for people whose land has been recovered are slow, in many cases people have handed over land for projects but have not had resettlement land to build houses to stabilize their lives.

It is worth mentioning that many localities have not yet had solutions to help people stabilize their lives after clearance; the mentality of hesitation, fear of mistakes, fear of responsibility, and lack of initiative of a number of officials working on site clearance has prolonged the process of processing compensation records, land valuation, land transfer, etc., reducing the effectiveness and efficiency of direction, administration, and law enforcement. In addition, the origin and boundaries of land of households and organizations are unclear; cadastral maps of many districts and communes in the province have not been measured or have just been measured; updating and monitoring of changes are not continuous, leading to difficulties in checking and verifying boundaries and origins of land.

In order to promote economic growth to reach 8% in 2025 according to the province's target, the province's economic sectors must have high growth rates, which means facing many difficulties and challenges, especially the "bottlenecks" in disbursing public investment capital that need to be promptly resolved.

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Final episode: Efforts to overcome challenges

Article and photos: HAI DANG



Source: https://baohagiang.vn/kinh-te/202502/go-diem-nghen-giai-ngan-von-dau-tu-cong-ky-dau-diem-nghen-kim-ham-tang-truong-6b94b89/

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