Vinh Phuc Investment Capital Distribution: Prioritising Construction Debt Clearance

3:11:51 PM | 30/10/2014

Recently, Vinh Phuc Provincial People’s Committee opened the October session, agreeing to allocate capital to settle the 2015 basic construction debts, creating favourable conditions for the resources restructuring and a rational capital allocation, placing high priority on key projects. Provincial leaders also spoke up on a number of pressing issues for socio-economic development in 2015 such as: how development capital for 2015 would be allocated to sectors and localities; Solutions to successful implementation of the Restructuring Scheme for the provincial agriculture and rural labourers; the Roadmap Scheme towards a general health insurance in the province period 2014 - 2020; the support level would be revised and supplemented to enhance school facilities pursuant to Resolution 38 of the Provincial People’s Council.
 
As reported by the Department of Planning and Investment, by April 30, 2014, Vinh Phuc had a basic construction debt of VND2,977 billion, which was projected to be cleared VND100 billion by the end of 2014 using the surplus revenues in 2013. Thus, by the end of 2014, construction debt would have been VND2,877 billion, of which the provincial budget debts would have been about VND1,074 billion. Reported investment demand for projects of departments, branches and People's Committees of districts, cities and towns by September 30, 2014 was VND26,145 billion, of which, provincially approved projects accounted for VND15,338 billion; works approved by districts and communes taking up VND8,807 billion. Investment demand in 2015 was estimated at VND7,753 billion. However, from the perspective of focusing on clearing debt in fundamental construction, while giving about 20-30 percent of total investment capital for major projects and the programs of building new rural, the Department of Planning and Investment projected the 2015 investment capital for development of VND3,300 billion, of which focused investment budget was VND2,900 billion, land fee VND400 billion. Accordingly, three plans were introduced to balance the main tasks of provincial budget.
 
At the meeting, the majority of participants agreed with option one: Arranging full payment for the provincial budget debt of fundamental construction. At the same time, sectors and localities must inform difficulties and obstacles in the process of implementing assigned tasks and specifically ask the province for mechanism to help remove difficulties in communes severely indebted; adjusting the level of investment support under Resolution 19, Resolution 38 on support for infrastructure construction for communes which loss agricultural land and support for school facility enhancement to suit practical; increasing funding for projects and programs related to the field of agriculture and health.
 
 Concluding this content, Chairman Phung Quang Hung of Vinh Phuc Provincial People’s Committee agreed to select option one, in capital allocation, prioritising fundamental construction debt in the spirit of Directive 27 of the Prime Minister. On the basis of viewpoint, principles and capital structure built by the Department of Planning and Investment, as soon as the government officially announced the capital plan in 2015, the Provincial People’s Committee will give direction for the fund allocation to each sector and local.
 
Restructuring Scheme for the provincial agriculture set the goal that by 2020, the growth rate of aquaculture would reach an average of 2.5 percent/year; Livestock as the main sector would account for 60 percent of total agricultural value. The sectors of dairy, pig farming, vegetable growing would become competitors on regional arena; reducing the rate of agricultural labour to 25 percent. By 2020, Vinh Phuc province would meet the new rural standards; increasing the income of rural population two times higher than 2013; reducing rural poverty rate one percent per year. Solutions for implementation of the scheme was to focus on promoting propaganda; improving the quality of planning, reviewing, supplementing and adjusting the planning, monitoring and administering to enhance the effectiveness of state management in planning; promoting the application and transfer of science and technology, as well as the extension and mechanization of agricultural production; positive transformation, land accumulation for production... As projected, three main sectors would be focused in promotion were: dairy farming, pig farming, green vegetables. Total capital for the implementation of the scheme during the period 2014 - 2020 was set about VND12,110 billion.
 
About this content, Chairman Phung Quang Hung required departments and agencies to coordinate with consultant units to continue calculate the demand of the market to prepare a suitable building mechanism for production of goods; continuing to preserve and promote the value of tourism products, especially gold floral tea of Tam Dao. The Chairman chose dairy, beef and pork as the main industry; however, it’s also crucial to diversify livestock products to develop sustainably. Regarding human resources, Mr Hung required specific solutions for rural labour shifting to other areas considering practical situation in each locality. As soon as the scheme got approved, it needed to be specified in projects, at the same time creating favourable conditions for businesses to invest in the agricultural sector and rural areas.
 
Hien Nam