Mpi

Tran Quoc Phuong - Deputy Minister of Planning and Investment. Photo: mpi.gov.vn Since then, VIR has continuously grown from strength to strength, reaffirming its crucial role in the Vietnamese economic media landscape and contributing greatly to the development and international integration of the country. Throughout its history, VIR has closely followed the Party’s directions and the country’s policies and laws, and the MPI’s guidelines. In doing so, this important media agency vividly reflects all aspects of the domestic economy and society, and promoted Vietnam’s investment and business environment to partners all around the world. The ongoing health crisis and its devastating consequences have prompted multinational corporations and entire nations to speed up investment restructuring processes to avoid dependencies on one country or partner. To this end, many countries around the globe have issued preferential policies and strong support packages to retain existing foreign investors or attract new ones. Realising this big opportunity, Vietnam has also been taking drastic measures to meet the needs of investors, such as preparing land, premises, factories, and infrastructure. Moreover, the government has issued special incentive packages applicable to large-scale projects applying high technology and creating high added value, spill-over effects, and conditions for local companies to participate in regional and global value chains. Vietnam also strives to prepare qualified human resources, a welcoming environment for foreign experts and workers, and the promotion of the supporting industries. Moreover, the nation will promote investment cooperation by setting up a working group to further support the activities of and maximise favourable conditions for foreign investors coming to Vietnam. In that context, VIR’s role will be to follow up on the views of the government and the MPI to holistically, accurately, and promptly reflect on the economic …

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The total public investment capital has increased sharply in the 2021-2025 period compared with 2016-2020, but the number of projects has fallen significantly. The Ministry of Public Investment's (MPI) report to the Prime Minister on medium-term public investment in 2016-2020 and predictions for 2021-2025 showed that the total investment capital of the state in the next period is VND2.75 quadrillion, an increase of 37.5 percent over the previous period (the amount approved by NA in 2016-2020 was VND2 quadrillion). MPI is determined to maximize the mobilization of all resources in the economy to reach the state’s investment of VND2.75 quadrillion. The total number of projects to be allocated capital for the period is 6,447, a 50 percent reduction from the 2016-2020 period. This includes 3,304 new projects, or 78.5 percent of that in the previous period. The average capital of each project is VND154 billion, a two-fold increase compared with the VND88 billion in 2016-2020. As such, the number of new projects is on the decrease. However, when supervising public investment capital expenditure plans, MPI found that some ministries, localities and agencies do not strictly observe the regulations and principles on capital allocation. They start projects while not ensuring the capital arrangement for transitional projects, and approve projects that exceed the allocated capital. The problem needs to be fixed, and the rampant, fragmented investment needs to be stopped so that unfinished projects can be completed. Only 7,354 projects were completed in the 2016-2020 period, or 66.2 percent of the total projects in the medium-term plan. According to MPI, a series of large transport projects will be developed with public capital in the next five years. The Government will spend VND97.9 trillion on 74 key inter-region projects, and arrange VND8.1 trillion to complete 10 projects belonging to the coastal route from Quang Ninh to Nghe An. Regarding the …

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Despite the pandemic, in 2020 Vietnam reported the highest rate of public investment disbursement in the past five years. How did the country manage this? Deputy Minister of Planning and Investment Tran Quoc Phuong Public investment disbursement in 2020 reached around VND470 trillion ($20.43 billion), equivalent to 97.5 per cent of the yearly plan – the highest in years. Especially, when the country was hit by COVID-19, the government urged disbursement to encourage economic growth, reflecting the key role of public investment in socioeconomic development. Thereby, numerous conferences were held with the participation of the government and relevant authorities to accelerate public investment disbursement while the prime minister, deputy PMs, and the minister of planning and investment led delegations to visit and address bottlenecks holding up major public investment projects across the country. Updates to the legal framework last year have improved transparency and strengthened the responsibilities of leaders to improve project performance. Specifically, following a proposal from the Ministry of Planning and Investment (MPI), the National Assembly allowed ministries, agencies, and localities to reallocate capital under their management to pour more into meaningful projects. Additionally, 2020 was the last year of the 5-year socioeconomic development plan and the 10-year socioeconomic development strategy, and saw heated activity to prepare for the next phases of development. This put huge pressure on authorities of all levels to accelerate projects and clinch the targets set out for them. The disbursement was a lot slower in the first months of 2021. How would you explain this? As a general rule of thumb, disbursement of public investment is usually slower at the start of each year and each development period. Public investment projects, especially construction works, often take a long time to be implemented and government payment …

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