According to a report from the ministry sent to the Prime Minister on public investment disbursement, around VND318.6 trillion (US$12.2 billion) had been disbursed by the end of June.
By the end of July, disbursement had risen to an estimated VND388.3 trillion, equivalent to 39.5 percent of the plan and 43.9 percent of the Prime Minister’s assigned target.
This marked a 10 percent increase compared to July 2024, when the disbursement rate stood at only 27.8 percent.
Six ministries and central agencies and 23 provinces and cities surpassed the national average disbursement rate, while 30 ministries and agencies along with 11 localities reported disbursement rates lower than the national average.
This reflects a significant difference in the ability to use capital among ministries and localities amid the transition to the two-tier local government model, the ministry said.
There have been persistent roadblocks to the disbursement of public investment, including site clearance, unexpected increases in prices of materials like sand and fill soil, and overlapping planning and investment procedures, especially for projects funded by official development assistance.
Aside from these issues, the transition to the two-tier local government and merger of local administrative units also caused some projects to adjust their scale and investments.
Determination and drastic efforts at both central and local levels is critical to promote the disbursement and efficiency of public investment, which is identified as an important driver for growth, said Director of the ministry’s Department of Infrastructure Development Duong Ba Duc.
Simplifying side clearance procedures and enhancing accountability at all levels, especially at the commune level, where many infrastructure projects are directly implemented, will be key to accelerating public investment, he added.
The Ministry of Finance aims to reach a public investment disbursement rate of 60 percent by the end of the third quarter and 100 percent by the year's end.
More than VND548.6 billion was disbursed in 2024, meeting 72.9 percent of the plan.
