Unlocking Resources to Leverage Development

Accelerating the disbursement of public investment has unlocked all resources for infrastructure development, attracting direct investment, and paving the way for local development while improving the quality of life for residents. The Binh Dinh Department of Planning and Investment remains committed to supporting departments, sectors, localities, and businesses in successfully fulfilling this important task. Mr. Le Hoang Nghi, Director of the department, shared some valuable information about this issue with Vietnam Business Forum.

All levels and branches of Binh Dinh government are seriously accelerating public investment disbursement. Could you please elaborate on the significance and objectives of this task to local development? How is the Department of Planning and Investment playing a role in enabling this process?

In 2024, the total funding plan assigned by the Provincial People's Council was VND8,885.61 billion. As of December 11, 2024, the value of disbursed public investment capital managed by the province was VND7,331.4 billion, equal to 93.21% of the target assigned by the Prime Minister and 81.98% of the plan allotted by the Provincial People's Council. The disbursed value was 5.46% higher than the same period of 2023. In 2024, the disbursement value was estimated at VND8,807.81 billion, equal to 111.98% of the task allocated by the Prime Minister and 98.49% of the plan designated by the Provincial People's Council (versus 94.53% in 2023).

The 2025 planned public investment fund approved by the Provincial People's Council in Resolution 99/NQ-HDND dated December 12, 2024 was VND9,381.58 billion, including VND8,170.07 billion of local budget and VND1,211.51 billion of central budget. The province targeted to disburse 100% of the planned fund in 2025. Of the sum, over 40% will be spent in the first half, over 60% by the third quarter, over 90% by the fourth quarter and 100% by January 31, 2026.

Tasked to promote public investment disbursement by the Provincial People’s Committee, the Department of Planning and Investment actively advises the committee on key solutions as follows:

Advising the Provincial People's Committee to dispatch directives on strong State-funded public investment disbursement managed by the province. The department proposes targets, requirements and regulations on time-based disbursement levels and action solutions and promptly removes bottlenecks and obstacles.

Advising competent authorities to flexibly revise capital plans, resolutely transfer capital planned for slow-moving projects to better ones and qualified transitional projects.

Actively coordinating with the Department of Finance in entering development investment expenditure estimates (including revised and added items during the year) on the Tabmis system to ensure best funding conditions for qualified projects.

Binh Dinh Provincial People's Committee and Vingroup sign an MoU for comprehensive cooperation to promote green transition in the province

Speeding up disbursement on digital platforms, ensuring safety, security and convenience; immediately settling payments for qualified projects in at most three working days.

Prioritizing resources to accelerate the progress of sector-specific appraisal and approval of investment, design and project estimates; proactively advising competent authorities to promptly revise the planning of mining sites to make sure that the demand for raw materials used for project construction is well met.

Directing investors to be active in project implementation, from site clearance, land compensation and project implementation to acceptance and payment; resolutely and promptly handling contractors who violate construction progress, construction quality, slow payment procedures for completed volume and breach signed contract terms.

The approval and implementation of Binh Dinh Provincial Planning for the 2021-2030 period, with a vision to 2050, will open up many opportunities and development spaces, but it requires more “quality” investment and greener business development. How is the Department of Planning and Investment realizing the above goals and tasks?

On December 14, 2023, the Prime Minister issued Decision 1619/QD-TTg ratifying the Binh Dinh Provincial Planning for the 2021-2030 period, with a vision to 2050. This is an extremely important legal basis to create a solid corridor for the province's sustainable development in the coming period.

To achieve the Planning goals, the province advocates effectively mobilizing and using the investment fund as one of key solutions, with private corporate investment being a decisive driving force to achieve socioeconomic development goals.

The province focuses all resources on building essential infrastructure, including transport infrastructure, industrial zone infrastructure, power grid and social infrastructure.

Binh Dinh focuses on revising investment attraction and business support mechanisms and policies, with priority given to magnetizing giant environmentally friendly high-tech projects, especially FDI-funded projects. The province centers on drawing potential investors with modern technologies in preferential industries like processing and manufacturing industries (wooden furniture, textile and garment, food, beverage, pharmaceutical and biotechnology), supporting industries (electronic components manufacturing), information technology, energy and new materials.

In 2024, the province licensed four new foreign direct investment (FDI) projects with VND2,812.58 billion (US$113.17 million) of registered investment capital, totaling 93 FDI projects with US$1.36 billion. In the year, the province certified 64 domestic direct investment (DDI) projects with nearly VND11,900 billion. In combination, Binh Dinh had 68 FDI and DDI projects with VND14,646.2 billion, equal to 68% of the full-year plan. Among them, 54 industrial projects registered to invest over VND7,326 billion, up 17.39% in projects and 13.5% in value (in 2023, the province had 46 new industrial manufacturing projects with a total registered capital of about VND6,454.4 billion).

How do you think about current business support in the province? What are business support solutions in the coming time?

In the past, provincial and district authorities actively, urgently and effectively coordinated in local business support which yielded positive results, demonstrated with consistent policies and specific programs as follows:

The Department of Planning and Investment made efforts to simplify and make transparent investment licensing and business registration processes to reduce the time to settle documents for businesses.

The connection with commercial banks to spread preferential credit packages for small and medium-sized enterprises (SMEs), especially those involved in high-tech agriculture, supporting industries and digital transformation, helped many of them to surmount their difficulties.

The province hosted investment promotion conferences, business connections and exhibitions and supported participation in e-commerce platforms, helping companies expand market access.

However, Binh Dinh still confronted several shortcomings. For instance, some companies, especially SMEs, had narrow access to the market. Asynchronized infrastructure for production and logistics in some areas resulted in rising costs for local companies. Some companies still had governance capacity and applied outdated technologies. Therefore, to support businesses more effectively in the coming time, the department proposed some key solutions as follows:

Promoting information technology application in document management and settlement; reducing the time of handling procedures on investment, land, construction and environment, ensuring transparency and consistency.

Enhancing investment promotion and business support to attend domestic and overseas exhibitions and fairs; working out investment attraction policies for priority areas.

Organizing regular government-business dialogues to grasp and resolve emerging problems; applying a quick response mechanism for businesses to access information and get timely support.

The provincial government is always committed to supporting business development. We will continue to make efforts to have an enabling investment and business environment, remove difficulties faced by companies and help them achieve sustainable development and play a greater role in the common prosperity of Binh Dinh province.

Thank you so much!

By Duy Binh, Vietnam Business Forum