Major projects: Surveyors work on a construction site in Hanoi. Officials are calling for the removal of the hindrance of red tape and the enforcement of discipline, responsibility, innovation and growth in financial management. — AFP
HANOI: Despite the current economic challenges, public investment in Vietnam is picking up speed.
In the first half of financial year 2025 (1H25), more than 268 trillion dong (US$10.5bil) was disbursed, reaching 32.5% of the annual target, and up from 28.2% in the same period of last year.
This increase reflects stronger central directives and renewed efforts by local authorities and project teams to accelerate key and delayed projects, rebounding from a sluggish 9.35% disbursement in the first quarter.
Disbursement plays a key role in boosting the economy, especially as exports and consumption slow.
According to the Finance Ministry, public funds are now directed more efficiently into major infrastructure and priority projects.
“Public capital is being concentrated where it can create new space and momentum for socio-economic growth,” said Finance Minister Nguyen Van Thang.
Public investment usually starts slow early in the year due to project planning and procurement.
In past years, only 27% to 29% was disbursed by mid-year, rising to over 90% by the end of the year. In 2025, the pace is already ahead, showing strong momentum for the rest of the year.
Major expressway projects provide tangible proof. Sixteen new highways have been completed and put into operation, expanding the national network from 1,327km to 2,268km. This progress has kept Vietnam on track to hit its 2025 target of 3,000km of expressways.
Despite the optimism, challenges persist.
Fifty-eight ministries, sectors and provinces remain below the national average disbursement rate.
The government has set an ambitious goal of disbursing 100% of the public investment in 2025, higher than the 95% benchmark in past years.
Prime Minister Pham Minh Chinh underscored the importance of public investment at a recent government conference, stating it would be a vital force in boosting economic growth, stabilising macro indicators and creating jobs.
He emphasised the need for continued institutional reform and faster site clearance to avoid procedural bottlenecks.
The political will is clear. Projects with long-standing difficulties are being reviewed and resolved to unlock frozen capital.
National Assembly Deputy Trinh Xuan An of Dong Nai Province called on the government to create a mechanism for handling over 2,200 lingering projects, valued at more than US$230bil.
“Unblocking these projects would unleash not just public funds, but also private and foreign investment,” he said.
Lawmakers said this would help Vietnam reach its 8% gross domestic product (GDP) growth target this year and set the stage for future growth.
In Ho Chi Minh City, a task force has been deployed to accelerate administrative processes and enhance inter-agency coordination.
Projects must now follow the “six clears” framework: clear responsibilities, timelines, authorities, outcomes, personnel and tasks.
Contractors are also encouraged to operate in three shifts to ensure speedy execution.
Chairman of the municipal People’s Committee, Nguyen Van Duoc, has ordered expedited approval for high-performing projects and directed agencies to reduce processing times by 30%.
In Hanoi, the city’s leaders target disbursement of over 87 trillion dong, up 13% from 2024.
With nearly 27 trillion dong already disbursed by June 20 – 31% of the annual – the capital city is pressing ahead on key transport and drainage projects, including Tu Lien and Tran Hung Dao bridges, as well as Ring Road 4.
To expedite delivery across the board, several major projects have received instructions to complete documentation within a single day timeframe, cutting approval timelines by 60%. — Viet Nam News/ANN
