[NEWS] - Public investment is expected to grow strongly after the gap

Public investment plays an important role, especially in the context of the complicated development of the COVID-19 pandemic. According to Prime Minister Pham Minh Chinh, it is necessary to disburse nearly VND 250 trillion in the last 3 months of the year to achieve strong growth expectations after the lockdown.

At the national online conference with ministries, sectors and localities on the disbursement of public investment capital in 2021, on September 28. The report of the Ministry of Finance shows that, in the first 8 months of the year, public investment disbursement reached VND 183,320 billion, equivalent to 39.74% of the plan. Expected disbursed capital by the end of September will reach 47.38%, equivalent to 218,550 billion dong. Compared with the Prime Minister’s plan to allocate public investment capital this year of VND 461,300 billion, there is still about VND 242,750 billion that has not been disbursed. Meanwhile, according to the Ministry of Planning and Investment, there are currently only 4 ministries and 11 localities with a disbursement rate of over 60%. In addition, there are 76/114 departments, ministries, central agencies and localities with a disbursement rate below the national average (47%), some agencies have not yet disbursed any dong.

Prime Minister at the meeting (Source: VGP News)

Faced with this fact, the Prime Minister requested that the allocation of capital must be carefully prepared, choosing the right key and key projects. In the context of limited state capital, it must be in accordance with the conclusion of the Central Government: public investment must lead and activate investment of all economic sectors, mobilize all resources in the society for investment and development

After completing the disbursement, the Prime Minister also requested that the Ministers and Chairman of the People’s Committees of the provinces and cities soon complete the assignment of detailed capital plans for new programs and projects; carefully review and proactively adjust capital from slow-disbursed projects to well-disbursed projects, from one agency or locality to another according to regulations. Thereby, public investment in delayed projects will continue as planned. One thing that could not be more wonderful is the re-activation of trade, import and export to help recover the post-Covid-19 economy.

Thus, Enterprises and Investors benefit and return to work to re-strategize their business and reinvest previously delayed projects. On the other hand, businesses and units need to effectively take advantage of the opportunities of free trade agreements (EVFTA, CPTPP...) to maintain and avoid losing market share, especially with key products.

Cao Duy