Disbursement backlogs must be fixed soon as public investment identified key solution to economic recovery

VGP – Prime Minister Nguyen Xuan Phuc pressed ministries, agencies and localities to fix three backlogs that have led to low disbursement rate of public investment capital for years.

July 16, 2020 2:32 PM GMT+7

Prime Minister Nguyen Xuan Phuc presides over an online meeting Thursday to seek ways to accelerate disbursement of public investment. Photo: VGP

The bottlenecks are idle capital, slow payment for complete projects, and stagnant procedures, stressed the Government chief while addressing an online meeting to seek ways to accelerate disbursement of public investment.

He emphasized that the COVID-19 pandemic has resulted in low growth rate, job loss and income shrinkage in the first six months this year.

From left to right: Deputy Prime Minister Vu Duc Dam, Permanent Deputy Prime Minister Truong Hoa Binh, Prime Minister Nguyen Xuan Phuc, Deputy Prime Minister and Foreign Minister Pham Binh Minh, and Minister-Chairman of the Government Office Mai Tien Dung. Photo: VGP

Against that backdrop, public investment has been identified by the Government as a key solution to spur economic recovery, said Phuc, adding that the central Government and localities must focus on disbursing nearly US$28 billion in public investment as planned for this year.

The General Statistics Office estimated that for every 1% of total investment disbursed, the country’s GDP could enjoy a boost of 0.06%.

In the half, disbursement rate reached 33.9%, equivalent to VND 160 trillion, compared to 25.56% of the same period last year, according to the Ministry of Finance.

As disbursement pace is moving at a snail’s pace, Phuc asked ministers and chairmen of provinces and cities to write down specific action plans to accelerate public investment disbursement and send to him.

They must also report on the progress of public investment disbursement every two weeks, Phuc ordered.

At the meeting, PM Phuc singled out localities with disbursement rate of over 45%, including Nghe An, Thai Binh, Hung Yen, Ninh Binh, Phu Tho, Bac Ninh, Ha Nam, Lao Cai, and Tien Giang while criticising others for slow pace such as Quang Tri, Tra Vinh, Khanh Hoa, Thai Nguyen, Can Tho, Da Nang, Ninh Thuan, and Dong Nai./.

By Quang Minh