Ho Chi Minh City was allocated VND70 trillion (US$3 billion) in public investment this year, double the figure last year, and the city set a target to disburse over 95 percent of the amount.

The municipal People’s Committee stated the target in a report on its public investment results in 2022 and solutions for 2023 sent to the national government.

According to the report, the disbursement of nearly $3 billion is not only challenging for the operation and execution of public investment projects in the city but also an opportunity for the city to prove its dynamism, creativity, and responsibility.

Based on lessons drawn from last year, the city proposed solutions to improve public investment disbursement in 2023. 

In particular, the city suggested its People’s Council should be allowed to allocate the local budget in the mid-term and annual public investment plans.

In addition, the municipal People’s Committee should be authorized to make decisions on the investment in and adjustments to Group-C projects, which require an investment of below VND120 billion ($5 million) each.

The city also proposed allocating capital for compensation for all projects listed in the mid-term public investment plan.

Furthermore, the municipal People’s Committee looks to shorten the time for public investment procedures by at least 30 percent.

It also suggested regulating clearly the responsibility of management agencies and investors of projects.

“The municipal People’s Committee will focus on public investment disbursement at the beginning of the year with drastic, synchronous, comprehensive, and effective solutions," the city stated in its report.

As of January this year, Ho Chi Minh City has disbursed some VND26.6 trillion ($1.1 billion) in public investment, accounting for 71.3 percent of the total assigned capital. 

The disbursement rates were not equal in different months. Up to 56 percent of the total public investment was disbursed in the last months of the year.

In addition, many investors failed to follow the city’s disbursement plan. 

In particular, 63 out of the 92 agencies and project investors did not reach a public investment disbursement rate of at least 86 percent.

Of the total, nine entities reported a disbursement rate of 80-86 percent; 23 others, 50-80 percent; and the 31 others, under 50 percent.

With the lower-than-expected disbursement rate, chairman of the Ho Chi Minh City People’s Committee Phan Van Mai took responsibility before the prime minister.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!