According to the Minister of Planning and Investment of Vietnam, Bui Quang Vinh, the results from more than a year showed that the unfocussed allocation of public investment has been largely overcome, especially in the central ministries and agencies.
By 2015 payment of arrears to be completed
This achievement stemmed from the local ministries and agencies’ review and evaluation of investment projects under their management; division projects into three categories and priority given to capital for projects with high social and economic efficiency, completed early in 2012 - 2013. Order, the discipline of choice, decision and approval of investment projects have been enhanced, including the responsibilities of the head for investment efficiency in general and specific projects in particular. Besides, conditions for approval of investment projects have been tightened.
In terms of Government bonds, ministries, agencies and localities have reviewed and allocated bonds for the period of 2012 - 2015; completed allocation for each item which had been approved by the competent authority ; the branches and localities have specific knowledge about capital allocation, portfolio investment projects to be carried out, the list of projects to be suspended or transferred to perform in other forms. At the same time. they initially summarized statistics, calculated the amount of basic debts construction of capital from the state budget; resolved in favor of ministries, sectors and localities to prioritize the allocation of capital for debt repayment construction and by 2015 payment of the arrears must have been completed.
In addition, as assigned by the Prime Minister, the Ministry of Planning and Investment urgently researches on building a decree on medium-term investment, the Investment Law, Investment Law (amended) and the Law on Enterprises (amended); promptly solves difficulties for large-scale foreign investment projects in high-tech industries with high value-added.
Continuing to cut spending
To restructure investment, focusing on public investment, Minister Bui Quang Vinh stressed some solutions that will be taken in the future. In particular, the Government continues to cut unnecessary expenses, practice saving to spend about 20 percent of the total investment budget for development; and contribute to the mobilization of about 30 - 35 percent of GDP in total social investment.
The Government issues Public Investment Law (or law on the management of the state capital), unify management of all types of state investment, including investment from the budget, government bonds, the State's investment credit and capital investment in state enterprises. The Government also strengthens discipline, transparency and accountability in budget management, tight control of public debt and maintains national financial security.
The Vietnamese Government will also implement comprehensive and consistent medium-term investment plan 2013 -2015. It will spend capital from the budget for projects, key projects of the country; spend a satisfactory budget for participation in public private partnership projects, ODA counterpart fund and funding clearance. At the same time, the Government will establish and reasonable operational processes, rigorous and effective identification, evaluation, selection, capital distribution and implementation of public investment projects; only the projects that meet criteria of socio-economic efficiency are chosen.
The government also asks the competent authorities responsible for reviewing all investment projects in the area, strictly control the scope and size of each investment project according to the objectives, and field approved program; decides to invest only when the project has been selected in accordance with procedures and priorities, identified funding and the ability to balance and allocate sufficient funds to complete the project top from the budget at each level.
The Government also publicizes and makes transparent information on investment; and at same time, enhances the competence and capacity of surveillance systems for public investment, encourages and facilitates community surveillance activities for public investment in particular projects and investments in general.
The biggest difficulty in restructuring public investment in Vietnam is a huge imbalance between the demand for balancing capital and investment needs, especially of the localities. Therefore, the balance capital can only meet a small portion of the actual needs of the country's investment in general, of each branch of the local in particular; several investment projects, including in the areas of priority first investment as transport infrastructure still have to be reduced, suspended; many roads are unfinished and degraded ... they still not balanced in the capital to implement so there are other more pressing needs.
Luong Tuan
Vietnamese
