Hanoi (VNA)🍒 – Socioeconomic development in the second quarter of 2023 and later is forecast to be complex and unpredictable with more difficulties and challenges than opportunities.

Following the socioeconomic development strategy 2021-2030, the Government has promoted public investment as one of the three main growth drivers.

According to the Ministry of Finance, by the end of March, only two ministries and 15 localities had recorded the disbursement of public investment capital above 15% of the planned volume. Some localities had maintained their stable disbursement rate over the years, such as the southern provinces of Tien Giang, Ben Tre (over 30%), and Dong Thap (25%).

A representative of Tien Giang province said that from last December, the allocation of public investment capital for 2023 to investors was carried out. Provincial leaders and authorities at all levels regularly have inspected the progress of projects, especially those in socioeconomic recovery and development programmes. As a result, more than 1.65 trillion VND was disbursed, meeting 33% of the assigned task.

🏅 With that spirit, Ben Tre provincial leaders affirmed that the early allocation of public investment capital is a prerequisite in the disbursement process. In addition, the province prioritises capital on projects that are showing good progress and are likely to be completed within the year.

In Dong Thap province, provincial leaders reported difficulties and obstacles in a timely manner to ministries and sectors to seek solutions. However, according to the Ministry of Finance, by the end of the first quarter, there remained 49 ministries and 24 localities posting a disbursement rate of less than 9%.

Therefore, the ministry said that it is necessary to tighten discipline, strengthen responsibility, and efficiency and speed up public investment disbursement.

On April 13, Deputy Prime Minister Tran Hong Ha worked with 13 localities to seek measures to accelerate the disbursement of public investment.

Leaders of provinces and cities said that the biggest difficulties lie in site clearance and resettlement, particularly determining the origin of land, land value, and agreement with people and many localities. Localities have not actively arranged land funds for relocation. In addition, the procedures for converting forest land, rice-growing land, contract negotiation, bidding, and disbursement of foreign loans for ODA projects take an extended period of time.

To solve these problems, Deputy PM Tran Hong Ha asked localities to carry out land price valuation and assigned the Department of Natural Resources and Environment to be the advisory body. He emphasised that public investment will be affected in local authorities seeing delay in land valuation.

♕ Ha requested that before April 20, provinces and cities must take data and reports on projects that need to extend the capital use plan for 2022 and then submit them to the Prime Minister for consideration and decision in April.

Meanwhile, the Ministry of Finance has asked relevant ministries, sectors, and localities to urgently take back overdue investment capital in advance. According to a report from the State Treasury, the amount of overdue advance up to now from ministries, sectors, and localities is over 12.603 trillion VND. The recovery of advance investment capital is identified as one of the factors contributing to improving the efficiency of public investment capital. Duong Ba Duc, Director of the Investment Department under the Ministry of Finance, said that the large outstanding advance causes worse efficiency of public investment capital. Therefore, the ministry requested other ministries, agencies, and localities to inspect and evaluate implementation and recover overdue investment capital in advance./.