Public investment disbursement at slow pace

The initial six months of the year saw public investment disbursement only met 27.86% of the annual plan, a figure even lower than the 29.02% recorded in the same period last year, according to the Ministry of Planning and Investment (MPI).

Causes identified

public investment disbursement at slow pace picture 1

Public investment disebursement remains at a snail's pace in many localities. (illustrative image)

A report drafted by the MPI highlights that as many as 25 ministries and centrally-run agencies recorded a disbursement rate of less than 10% throughout the reviewed period. Indeed, some have yet to begin disbursing any money at all.

The MPI attributed this slow pace to the numerous difficulties faced in terms of land acquisition, resettlement, compensation, poor planning, as well as rising input material prices and transportation costs. In addition, many contractors hesitated to undertake projects and were awaiting instructions for additional capital to come through due to the rise in the price of materials.

A range of external factors, including a 30% increase in the prices of input materials and fuel, have contributed to negatively impacting the implementation of various investment projects for over a year. As a result, the more projects that were carried out, the greater losses would be.

Difficulties in relation to land acquisition for construction projects are not new, although the problem continues to occur and has not yet been solved in localities due to difficulties in determining the origin of land, land price, and land fund for resettlement.

Solutions proposed

During a recent Government meeting held to implement the eastern part of the North-South Expressway project, Deputy Prime Minister Le Van Thanh requested that the Ministry of Transport move to iron out snags in a bid to ensure the project is completed on time.

To complete this, the Ministry of Transport proposed that the Government direct relevant ministries, agencies, and localities to stabilise the prices of construction materials and seek to reduce taxes and fees in order to ease pressure on construction enterprises due to the impact of increasingly-rising material prices.

Furthermore, the Ministry of Construction was requested to guide localities in announcing construction material prices on a monthly basis that are close to market prices.

The Ministry of Transport also directed project management boards to urgently work alongside contractors, keep a close watch on project progress, and quickly check and grant approval for complete components of projects, taking into account inflation, in order to promptly handle problems that potentially may arise.

Moving into the last six months of the year, this period will be the prime time for localities to accelerate investment disbursement. The maximum mobilisation of human and material resources is considered is a viable solution which needs to be implemented by contractors.

The Prime Minister has set up six working groups to monitor the allocation and disbursement of public investment capital for ministries, sectors, and localities. Meanwhile, several provinces have also moved to make public the monthly construction price index.

VOV

Other News

Vietnam accelerates innovation to boost growth, competitiveness

Vietnam accelerates innovation to boost growth, competitiveness

By 2030, Vietnam aims to rank among the world’s top 40 in the GII; raise total social investment in R&D to at least 2% of GDP, with non-State funding accounting for over 60%; increase international scientific publications by an average of 10% annually; and raise the number of patent applications and granted patents by an average of 16-18% annually.

Vietnam sees high growth prospects

Vietnam sees high growth prospects

Experts from the Institute of Vietnam and World Economy under the Vietnam Academy of Social Sciences noted the quality of recent growth as the high growth rate has been recorded against an increasingly higher comparative base.

Vietnam seeks bigger share of global Halal market

Vietnam seeks bigger share of global Halal market

Vietnam's Halal exports remain modest at around 900 million USD a year, accounting for less than 1% of the global market. Most exports are still raw agricultural and seafood products. Only around 1,000–1,300 Vietnamese businesses obtained or maintained Halal certification during 2024–2026.

Hanoi sets up inter-agency mechanism to operate carbon market

Hanoi sets up inter-agency mechanism to operate carbon market

Under a decision of the municipal People’s Committee on establishing an inter-agency working group, departments and agencies are responsible for identifying facilities subject to greenhouse gas inventories, developing emissions-reduction plans and studying projects capable of generating carbon credits.

Shrimp exports reach 3.3 billion USD in eight months

Shrimp exports reach 3.3 billion USD in eight months

According to data from the Vietnam Customs cited by the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp exports reached 478.5 million USD in August, up 4.2% from the same month last year. The eight-month total stood at 3.3 billion USD, representing a year-on-year increase of 12%.

Russian investors explore opportunities in Vietnam's real estate market

Russian investors explore opportunities in Vietnam's real estate market

Vietnam is seen as a potential market, with considerable room for growth in real estate, particularly commercial property, compared with some regional markets. Strong Vietnam-Russia ties and opportunities to establish foreign-invested enterprises are also considered favourable for Russian investors.

Phu Quoc airport planning adjusted to serve APEC 2027

Phu Quoc airport planning adjusted to serve APEC 2027

For 2021-2030, the Civil Aviation Authority of Vietnam proposed bringing forward the investment in a parallel taxiway system and a connecting taxiway north of Runway No. 2 at Phu Quoc International Airport, in order to connect with the aircraft maintenance and repair facility (hangar) planned for the northern area of ​​the airport.

Policy, infrastructure emerge as new advantages in FDI attraction

Policy, infrastructure emerge as new advantages in FDI attraction

From policy and infrastructure to industrial real estate, Vietnam’s FDI advantages are broadening towards a more integrated production ecosystem, offering investors a stronger combination of conditions for high-value, technology-intensive and long-term projects.

Logistics upgrade vital to 1-trillion-USD trade target: experts

Logistics upgrade vital to 1-trillion-USD trade target: experts

As trade expands, systemic bottlenecks across transport networks, warehousing, ports, border gates, and industrial zones are becoming more apparent. Experts emphasise the need to shift from a fragmented, project-by-project approach toward strategic management structured around trade corridors and integrated supply chains.

Ample room for Vietnam, US to deepen cooperation

Ample room for Vietnam, US to deepen cooperation

Do Ngoc Hung, Trade Counsellor and head of the Vietnam Trade Office in the US, said what stands out is not only the growth in trade volume but also the increasingly deep economic ties between the two countries.

Flexible fiscal policy helps drive economic growth

Flexible fiscal policy helps drive economic growth

According to the Ministry of Finance, State budget revenue in the first eight months of 2026 was estimated at 2.02 quadrillion VND (77.7 billion USD), equivalent to 80% of the annual estimate and up 16% year-on-year. Domestic revenue reached 1.75 quadrillion VND, accounting for 86.6% of total revenue and rising 16.6%.

Electronic components are produced at a factory in Hanoi. (Photo: VNA)

Hanoi's imports surge 41% in first eight months of 2026

Hanoi aims to achieve average annual export growth of at least 12% during 2026-30, with the city seeking to diversify export markets, boost high-tech and value-added products and reduce reliance on traditional markets.