Accordingly, by October 11, HCMC had successfully disbursed nearly VND16.8 trillion (US$671 million), accounting for 21.2 percent, which fell short of the set target.
The city identified several key reasons for the slow disbursement in the first nine months of the year. The most significant factor was the change in the effective date of the 2024 Land Law, which was moved from January 1, 2025, to August 1, 2024.
This change caused a substantial portion of the budget allocated for 2024 to land compensation and clearance to be delayed, as projects had to readjust their compensation rates in accordance with the new regulations.
Meanwhile, HCMC has a substantial compensation budget of VND33 trillion ($1,3 billion), accounting for 93.8 percent of the total investment capital. The adjustments to compensation rates have also increased the overall investment level. As a result, the city has only been able to disburse VND3 trillion ($120 million) of the compensation budget so far.
In addition to the aforementioned reason, there are several projects whose procedures fall under the authority of the central government, such as the one to address tidal flooding in HCMC, considering climate change factors (phase one), with a planned disbursement of VND6.8 trillion ($271.6 million)
The city has actively reported to relevant ministries, state agencies, and the central government on solutions for this project to expedite disbursement but has not yet received a. The city also has 57 projects awaiting completion of planning adjustment procedures.
Recognizing these challenges, HCMC has reviewed its disbursement targets and aims to achieve a disbursement rate of 38.4 percent or more in October 2024; 45.1 percent or more in November 2024; 85.9 percent or more in December 2024; and 94.6 percent by January 31, 2025 (compared to the initial target set for the year at 95 percent).
