Create more initiative for localities

Báo Đô thịBáo Đô thị09/02/2025


Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 1

To promote the disbursement of public investment capital, according to Dr. Nguyen Duc Kien - former Head of the Prime Minister's Economic Advisory Group, it is necessary to expand the application of specific policy mechanisms such as separating land clearance into independent projects, increasing decentralization to localities or simplifying administrative procedures. Below is the discussion between Dr. Nguyen Duc Kien and reporters of Kinh te & Do thi Newspaper on this issue.

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 2

In 2025, the public investment plan is 790,727 billion VND, about 120,000 billion VND higher than in 2024. What do you think about this record number?

- With the effective implementation of the 2025 public investment plan, the rapid flow of public investment capital into the economy, projects implemented on schedule, and quality assurance will certainly make important contributions to economic growth, have a spillover effect on economic sectors and occupations, and contribute to creating a synchronous and modern infrastructure system to increase the capacity of the economy and attract investment for sustainable development.

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 3

Vietnam's public debt-to-GDP ratio remains at a safe level, estimated at 37% by the end of 2024, lower than the ceiling of 65% set by the National Assembly. This creates ample room for the Government to continue implementing infrastructure projects without putting pressure on the national budget.

Government bond interest rates are currently low, around 4.5%/year with a 10-year term, minimizing financial costs and supporting the Government in mobilizing resources for key projects.

According to the Ministry of Finance's estimate, by January 31, 2025, public investment disbursement in 2024 reached 84.47% of the plan, equal to 93.06% of the level assigned by the Prime Minister, meaning that the target (95% or more) has not been met. In that context, are we able to "spend" all the huge capital allocated by the National Assembly and the Government in 2025?

- If we make the same efforts as in the 3 months of the fourth quarter of 2024, and with the determination from the beginning of 2025, we believe that we can absorb all the capital, that is on the condition that there are no major changes. If there are major changes such as natural disasters, floods or other geopolitical issues, it will have more or less impact. But we must say that whether this public investment is spent or not depends on our internal strength and personal will, and less on the international context.

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 4

So what are the difficulties and obstacles in disbursing public investment capital in 2025? What is the key point to create a breakthrough to speed up the disbursement of public investment capital?

- First is the habit of "taking it slow at the beginning of the year and accelerating at the end of the year". The picture of public investment capital disbursement in 2024 shows clear differentiation. The disbursement rate of ministries, branches and localities is uneven, some places are very high but some places are very low, causing the disbursement progress of the whole country to slow down, the disbursement rate has not reached expectations. In particular, the planned capital source from previous years has not been disbursed effectively.

But at the beginning of this year, at the regular Government meeting in January 2025, the Prime Minister concluded that this week the Government will assign growth plans to localities, and we all know that the corporate or state governance model must create pressure to have the motivation to develop. Now that we have started to create pressure, the way of managing the macro economy will also be different.

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 5

Or the implementation of public investment in the recent period still has limitations that affect economic growth such as: institutions and policies directly related to the formation and implementation of public investment projects are still inadequate, affecting the progress of project implementation. According to regulations, from the formation of the project until the capital can be disbursed, the implementing organization goes through many stages, with many processes, sequences, and procedures subject to the regulation of many laws such as the Law on Public Investment, the Law on Urban Planning, the Law on Construction, the Law on State Budget, the Law on Land, the Law on Bidding, the Law on Environmental Protection, the Law on Architecture... each stage has different problems. Meanwhile, the implementation must be sequential according to the provisions of the law, complying with the time, so even if there are small problems, it will affect the overall progress of the project.

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 6

The draft Law on Public Investment (amended) and the Law on Planning, the Law on Investment, the Law on Investment under the public-private partnership model and the Law on Bidding, which will take effect from 2025, are expected to impact the ability to achieve the target of public investment disbursement?

- To promote disbursement of public investment capital, it is necessary to expand the application of specific mechanisms and policies such as separating site clearance into independent projects, increasing decentralization and delegation of power to localities or simplifying administrative procedures.

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 7

It must be said that all the laws we amend in 2024 are in the old spirit, not the spirit of the Rising Era, not the spirit of "running and lining up at the same time". Now, certainly in 2025, the practical problems that arise will have to be amended in accordance with the spirit that the General Secretary has directed, amending anything that hinders the development process. The law taking effect means that we have been preparing for it for one or two years. With the "rising spirit" that has only started since November 2024, it will have to change.

For example, before the Public Investment Law, it did not reflect the determination that the Government had implemented in the 500kV circuit 3 from Quang Trach, Quang Binh to Pho Noi Hung Yen. In just 7 months, we were able to build more than 700km of 500kV circuit 3 and put it into use. And the Public Investment Law reflected that investment was in special cases. The problem now is, what special cases will the Government have to issue?

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 8

Or for example in Hanoi, we see the construction of a project to supplement water from the Red River to the To Lich River. When Hanoi did not do it, no ministry had any comments. Everyone saw that if it was not handled quickly, the Yen Xa plant would come into operation, the water sources supplementing the To Lich would be collected, leading to the river drying up. Reviving the To Lich River is very urgent to bring back the environment, landscape, culture, and protect the people's health. But when Hanoi did it, immediately "a hundred flowers bloomed" with opposing opinions and new ideas. I think that is the old way of doing things, the old way of thinking. Hopefully by 2025 we will be able to get rid of that way. We must do it in the spirit of locality knowing, locality doing, locality taking responsibility. They are there, they know best, they discuss how to do it, they do it, and they take responsibility.

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 9

Talking about the spirit of "local decision, local action, local responsibility", how do you evaluate the policy of promoting decentralization and delegation of power in implementing public investment projects, and responsibility for related contents during the implementation process?

- Actually, we are just starting to have this idea here. But moving forward, we will implement the Law on Public Investment and amend related Laws to clearly define what the local authorities must do and what the Central Government must do, thereby increasing local autonomy and clarifying the responsibilities of each level.

Speaking of responsibility, if there is no decentralization, how can we assign responsibility? For example, saying that this part of the project is assigned to the locality but the budget law does not assign it to the locality, the locality has to ask the Central Government for budget to do that, then it is clearly incorrect.

Therefore, if the law is to be amended, it must be amended thoroughly. If work is assigned, money must be assigned, and if money is assigned, responsibility must be assigned.

The current problem is that there must be criteria, the local People's Committee will consider it necessary and submit it to the local People's Council for decision. If we decentralize power to that locality, then let that locality do it, why do you interfere?

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 10

In 2025, according to many forecasts, our country's economy will face many difficulties and challenges, and public investment capital is expected to continue to be the leading important growth driver. With the large capital set out in the 2025 public investment plan, and with the current changes in institutions and new methods, do you expect the growth target to be achieved? How will public investment support growth?

- With more than 790,000 billion VND of public investment capital, it is a huge amount of capital, one of the three pillars to ensure economic growth and development. This year is the year with the largest total public investment in the 5-year plan for the period 2021 - 2025, we hope to have a breakthrough. If this year we increase by about 120,000 billion VND, it will help GDP increase by 0.8 to 1%. If last year it reached over 7%, this year with more capital, it will reach 8%. The problem is whether we can disburse all of it or not, requiring the determination of ministries, branches and localities.

To remove "bottlenecks" in public investment disbursement, promote the role and responsibility of heads of ministries, branches and localities in leading and directing public investment planning.

There is a great need for strong direction and responsibility for each level, each ministry and sector in implementing disbursement tasks. At the same time, it is necessary to improve administrative procedures, mechanisms and policies in public investment; publicize and make investment projects transparent. And especially, decentralize. Decentralization will create conditions for early allocation of capital plans, early approval, and putting projects into operation and use, thereby increasing the efficiency of capital use, promptly meeting emerging needs in practice.

Thank you!

Promoting disbursement of public investment capital: Creating more initiative for localities - Photo 11

16:36 09/02/2025



Source: https://kinhtedothi.vn/thuc-day-giai-ngan-von-dau-tu-cong-tao-su-chu-dong-hon-cho-cac-dia-phuong.html

Comment (0)

No data
No data

Event Calendar

Cùng chuyên mục

Cùng tác giả

No videos available