Vietnam Public Investment Disburses Half of Annual Plan by September, Showing Uneven Progress

The Vietnamese government views the disbursement of public investment as a crucial driver for economic growth. As of early September this year, over VND 513.3 trillion in public investment capital had been disbursed, equivalent to 50.2% of the Prime Minister's assigned annual plan. This represents an increase of nearly VND 4.83 trillion compared to the last week of August. According to a report submitted by the Ministry of Finance to the Prime Minister, ministries, agencies, and localities have disbursed VND 513,305 billion in public investment capital by September 3. Among these, nine ministries, agencies, and 17 localities achieved disbursement rates at or above the national average. Notably, the Vietnam Bank for Social Policies fully disbursed its allocated VND 4.275 trillion. The Vietnam Road Administration (VEC) reached 94.6%, and the Vietnam Development Bank exceeded 78%. Several ministries and localities with significant disbursement amounts (over VND 15 trillion) include the Ministry of National Defence, the Ministry of Public Security, the Ministry of Construction, and cities like Hanoi, Ho Chi Minh City, Hai Phong, and Hung Yen. Conversely, 24 ministries, agencies, and 17 localities have disbursement rates below the national average. Among these, the Vietnam Cooperative Alliance, the Committee for Ethnic Minorities, and the Ministry of Science and Technology have rates below 6% or have not yet disbursed any funds. If over VND 32.5 trillion, equivalent to 5% of the local budget for the planned Lao Cai - Hanoi - Hai Phong railway project, is excluded, the overall disbursement rate would reach 51.8%. This year's total national public investment plan amounts to over VND 1.04 quadrillion, including approximately VND 14.715 trillion supplemented from local budget balances. The Prime Minister's assigned plan totals over VND 1.02 quadrillion. Ministries and localities have detailed the allocation of over VND 1 quadrillion, representing 97.4% of the Prime Minister's assigned plan. Approximately VND 26.985 trillion, or 2.6% of the plan, remains undistributed by the units. The Ministry of Finance states that most of this capital was recently supplemented in August or adjusted by agencies for other projects. The government identifies public investment as playing a leading role in activating private capital and FDI, thereby boosting production and business activities. This capital injection is expected to increase total social investment and support rapid and sustainable growth. Calculations suggest that for every 1% increase in public investment disbursement during the 2021-2025 period, GDP could grow by an additional 0.058 percentage points. The government considers public investment a vital engine to achieve double-digit growth targets, develop synchronized infrastructure, and open up new development spaces. Therefore, accelerating the disbursement of public investment, alongside ensuring project quality and efficient capital utilization, is paramount.