Hanoi removes "bottlenecks" of site clearance and site clearance, speeds up public investment disbursement progress

Creating momentum to promote economic growth in the capital

Recently, the Chairman of the Hanoi People's Committee issued Directive No. 03/CT-UBND dated March 14, 2025 "on promoting the implementation and disbursement of public investment capital in 2025, ensuring the growth and sustainable development goals of the Capital".

Hanoi City is resolutely directing the implementation of bridges across the Red River. In the photo: Perspective of Tran Hung Dao Bridge across the Red River

In order to ensure effective implementation of the 2025 public investment plan with the goal of disbursing over 95% of the assigned capital plan (87,130 billion VND), creating momentum to promote the economic growth of the capital, the Chairman of the City People's Committee requested directors/heads of departments, branches, and sectors; Chairmen of People's Committees of districts, towns, and related units to seriously draw lessons, fully assess objective and subjective causes, limitations, weaknesses in management, operation and implementation; responsibilities of relevant collectives and individuals, especially units with low disbursement rates.

On that basis, propose timely solutions in the first quarter of 2025; at the same time, urgently focus on implementing key tasks.

Along with that, determining the allocation and disbursement of public investment capital in 2025 is a key political task, a top priority in the leadership, direction and implementation of all levels and sectors; promoting the role and responsibility of leaders in closely monitoring reality, proactively, flexibly and promptly operating to remove "bottlenecks" and difficulties and obstacles.

Model of the route connecting Gia Binh airport (Bac Ninh province) with Hanoi center - Photo: VGP — Model of the route connecting Gia Binh airport (Bac Ninh province) with the center of Hanoi - Photo: VGP

Notably, the Chairman of the City People's Committee requested to focus on removing the biggest "bottleneck" which is site clearance (GPMB), which directly affects the progress of project implementation to complete the public investment capital plan in 2025 to reach over 95%...

Identifying public investment as an important driving force to promote growth

Speaking to Kinh te & Do thi Newspaper, Director of Hanoi Department of Finance Nguyen Xuan Luu said that Hanoi's public investment plan for 2025 is VND87,130 billion (1.13 times higher than the plan for 2024). From the beginning of the year, the city's leaders have focused on directing strongly to accelerate the progress of project implementation. Hanoi continues to identify public investment as an important driving force for socio-economic growth.

Previously, the City People's Committee issued Plan No. 57/KH-UBND dated February 25, 2025 on promoting the implementation and disbursement of the 2025 public investment plan. At the same time, it assigned detailed tasks to units; organized a meeting on basic construction in the whole city; many projects are expected to complete the disbursement of 100% of the assigned capital plan by the end of the year.

Construction of the Nhon - Hanoi Railway Station urban railway project. Photo: Cong Hung

However, through monitoring by the Department of Finance, many projects are currently facing difficulties and obstacles in site clearance, affecting the progress of project implementation. Some regional linkage projects using central budget capital, with large total investment, have difficulties in site clearance. Difficulties in site clearance are mainly in determining the origin of land, people's disagreement, compensation prices, resettlement, etc.

The Department of Finance has advised the City People's Committee to focus on directing the removal of obstacles in site clearance work, which is the most important task in promoting the public investment plan in 2025.

Speed up the progress of projects using budget capital

According to the leader of the Department of Finance, the Capital Law 2024 and the Public Investment Law 2024 will facilitate and accelerate the site clearance work. The Capital Law 2024 and the Public Investment Law 2024 allow the separation of compensation, support, resettlement, and site clearance work into independent projects for all groups, including group B and group C projects (not only including important national projects and group A projects as per the Public Investment Law 2019). Currently, Hanoi has separated the site clearance project into independent projects in a number of projects and assigned districts and towns to be the investors of the site clearance projects.

Timely completion of public investment projects will contribute to the development of urban infrastructure and the country's economy. Photo: Pham Hung — Timely completion of public investment projects will contribute to the development of the country's urban and economic infrastructure. Photo: Pham Hung

Implementing the direction in Directive No. 03/CT-UBND of the Chairman of the City People's Committee, the Department of Finance continues to advise the City People's Committee on tasks and solutions to strive for a disbursement result of over 95% in 2025. Specifically: focus on removing bottlenecks and bottlenecks in project implementation, focusing on site clearance. Districts, towns and cities need to be responsible, urgent and determined in site clearance work.

In addition, the Department of Finance continues to advise the City People's Committee to propose that the City People's Committee continue to implement flexible payment mechanisms: investment preparation; construction drawing design, cost estimates; resettlement compensation when the State acquires land (GPMB) to promote GPMB progress.

With the characteristics of the 2025 Plan, the central budget capital is large (accounting for 16.5% of the capital plan of the whole city). The Department of Finance will advise the City People's Committee to focus on directing the acceleration of projects using central budget capital. At the same time, advise the City People's Committee to focus on directing the implementation of projects under the direction of the Party and Government leaders, such as bridges across the Red River (Tu Lien Bridge, Tran Hung Dao Bridge, Ngoc Hoi Bridge); Road connecting Gia Binh Airport (Bac Ninh Province) to the center of Hanoi; Urban Railway Line No. 5 (Van Cao - Ngoc Khanh - Lang - Hoa Lac) ....

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