Stronger Momentum in Public Investment Disbursement Drives National Growth Goals
Việt Nam’s Public Investment disbursement reached an impressive VNĐ409.17 trillion (US$15.49 billion) by August 31, successfully hitting 39.9 per cent of the annual plan and 46.3 per cent of the Prime Minister’s target, according to a report from the Ministry of Finance (MoF).
This performance marks a clear and significant improvement compared to the figures recorded during the same period last year, which were 36.9 per cent and 40.4 per cent, respectively, demonstrating a heightened commitment to accelerating capital expenditure.
A particularly notable area of progress was the disbursement of capital funded by the local budget, which saw a sharp advancement, reaching 58.3 per cent and recording an 18.3 per cent year-on-year increase.
This indicates that sub-national governments are effectively accelerating their expenditure on regional projects.
The Ministry of Finance has set a clear and demanding goal: to disburse at least 60 per cent of the Prime Minister’s target by the close of the third quarter and to achieve a full 100 per cent disbursement by the end of the year.
To ensure these critical targets are met, the MoF has directed ministries and provinces to finalize all detailed public investment disbursement plans by September 30.
This strict deadline is intended to guarantee timely allocation of funds, allowing for immediate project execution.
Furthermore, the ministry has called for intensified monitoring to swiftly detect and resolve any operational problems or specific bottlenecks facing individual projects, and to quickly report any deeper institutional or regulatory obstacles to the competent authorities for immediate resolution, thereby speeding up the implementation of public investment.
Accelerating Key National and Regional Infrastructure Projects
The successful fulfillment of the Public Investment targets is crucially dependent on the accelerated execution and disbursement for a portfolio of major national transport works and key regional projects, which are central to Việt Nam’s economic connectivity and future growth.
The report noted that while progress is being made, site clearance remains the most significant and pervasive obstacle hindering rapid project execution, with the ministry urging local leaders to take stronger, more decisive action to overcome this bottleneck.
Priority is now being placed on advancing major national transport works with the aim of completing at least 3,000 km of expressways, over 1,000 km of coastal roads, and the vital Long Thanh International Airport this year.
This aggressive infrastructure agenda is viewed as a catalyst for future economic activity.
In addition, key regional projects require stronger disbursement rates to ensure regional linkages are established.
These include the Ninh Bình – Hải Phòng Expressway, Ring Road 4 of the Hanoi Capital Region, and critical southern projects such as Gia Nghĩa – Chơn Thành, Tân Phú – Bảo Lộc, Bảo Lộc – Liên Khương, Ring Road 3 of HCM City, and the HCM City – Mộc Bài Expressway.
For projects funded by Official Development Assistance (ODA), authorities and investors have been instructed to fast-track administrative procedures, adhere strictly to established schedules, and address any obstacles immediately to prevent delays in externally-funded initiatives.
The effectiveness of this coordinated Public Investment push is vital, as the MoF has stressed that meeting the challenging 2025 disbursement target is absolutely essential to achieving the overall national GDP growth goal of at least 8 per cent, making timely spending a macroeconomic imperative.
Policy Compliance and Revenue Generation at Local Level
The overall success of the national Public Investment agenda is also intertwined with the need for better local budget revenue generation, particularly from land sources, and strict compliance with financial reporting regulations across all provincial levels.
The MoF’s data revealed mixed performance across various administrative bodies: nine ministries and central agencies, along with 22 provincial-level localities, have either met or successfully exceeded the national average disbursement rate.
Conversely, a substantial 29 central bodies and 12 localities are still lagging below the national average, indicating a need for performance reviews and targeted assistance.
The ministry has made a technical adjustment to the calculation of disbursement rates, now excluding recently added capital allocations, as some units received their funds late in the year.
This ensures a fairer assessment of those bodies responsible for projects that were allocated capital earlier.
Furthermore, provinces have been given a firm reminder to actively increase their budget revenue, with a specific focus on revenue generated from land-related activities.
This internal revenue generation provides provinces with greater financial autonomy and capacity to co-fund major infrastructure projects initiated through Public Investment.
Crucially, all provinces are required to strictly comply with the reporting rules mandated under the ministry’s Circular No. 37/2025/TT-BTC.
This compliance ensures transparency, accountability, and accurate tracking of expenditure, which is vital for effective fiscal management and for the successful monitoring of the government’s ambitious capital expenditure plan designed to stimulate strong economic expansion.
