Minister of Planning and Investment Nguyễn Chí Dũng.— Photo baochinhphu.vn

HÀ NỘI — The amended draft Law on Public Investment, along with proposed revisions to the Laws on Planning, Investment, Public-Private Partnership (PPP) Investment, and Bidding, is set to take effect in 2025. These reforms are anticipated to spark a transformative shift in public investment management by granting local authorities more autonomy and flexibility. Minister of Planning and Investment Nguyễn Chí Dũng spoke to the Vietnam News Agency about the crucial targets for the year ahead.

What impact has the disbursement of public investment capital had on the economy during the 2021-25 period?

The disbursement of public investment capital during the 2021-25 period has had a significant impact on Việt Nam's economy, particularly in the face of global and regional challenges, including the profound effects of the COVID-19 pandemic. Despite the nation's economic achievements, internal challenges such as a modest economic scale, high openness, and limited resilience to external shocks persist.

In this context, public investment has proven to be a crucial driver of economic growth, positively influencing national socio-economic development. Funds have been strategically allocated to key infrastructure projects, in line with the objectives outlined in the 13th National Party Congress.

Notably, 30 per cent of the total central budget capital has been earmarked for major national projects, including critical expressway initiatives, which are expected to play a pivotal role in ensuring sustainable socio-economic development for the country.

As of now, significant progress has been made in key infrastructure projects under the public investment plan. Notably, over 2,000 km of expressways have been completed, with a target of reaching approximately 3,000 km by the end of 2025 to meet strategic goals. The North-South expressway in the east has been completed, along with the launch of several urban railway lines, including Cát Linh-Hà Đông, Nhổn-Hà Nội Railway Station, and Bến Thành- Suối Tiên.

Additionally, the access channel to Cái Mép-Thị Vải port has been finished, and several key airports have been completed.  At the same time, work on the Long Thành International Airport project is also progressing, further enhancing the country’s transport infrastructure.

The medium-term public investment plan for the 2021-25 period has played a crucial role in driving the restructuring of investments across various sectors and regions. It has ensured a balanced alignment between socio-economic development and social security, as well as between different sectors, localities, and specific areas such as mountainous regions, border areas, islands and ethnic minority communities. The plan has also maintained capital allocation for dynamic economic zones and growth centres.

Completed projects have brought about noticeable improvements in key areas, including transport infrastructure, agriculture, rural development, national defence, security, information technology and digital transformation. 

The management of the Public Investment Plan for the 2021-25 period has marked a significant shift in awareness and management practices. One of the key achievements has been the reduction of scattered and fragmented investments. The number of public investment projects has decreased from over 11,000 in the 2016-20 period, to approximately 4,700 in the current period, streamlining the focus on more strategic initiatives.

The Government has set a public investment capital plan at over VNĐ790.72 trillion for 2025, a substantial increase from the VNĐ670 trillion allocated in 2024. What do you think about the government's track record in meeting this target?

In 2024, the Government and Prime Minister have taken decisive steps to address the challenges and obstacles in the implementation and disbursement of public investment capital. A key part of this effort has been the removal of bottlenecks, particularly in the institutional framework.

Notably, numerous legal documents have been submitted to the National Assembly for approval, covering critical areas such as public investment, state budgeting, land use management, the public-private partnership (PPP) model, and bidding processes. 

In 2025, to ensure that public investment continues to drive economic growth, a focused approach is required to accelerate the disbursement of capital from the start of the year. With the National Assembly approving a public investment plan of over VNĐ790.72 trillion, about VNĐ100 trillion higher than the 2024 target - timely and effective use of these funds is crucial.

I think key solutions to achieve this include assigning specific leaders to oversee the progress of each task and project and ensuring that each initiative is closely monitored for progress and disbursement. These leaders will be responsible for quickly identifying and resolving obstacles, ensuring that projects stay on track.

Additionally, strengthening decentralisation and delegating authority will empower local authorities to take greater initiative while ensuring clear individual accountability for project outcomes.

Finally, the implementation of strict rewards for success and penalties for delays or failures will encourage discipline and efficiency in disbursement processes.

2025 is set to be a crucial year in Việt Nam’s infrastructure development, as the country prepares for its medium-term public investment plan for the period 2026-30. In particular, the focus will be on improving the quality of project investment preparation for strategic projects that are expected to drive significant transformation, such as the North-South high-speed rail project, international rail connections, and urban railways in Hà Nội and HCM City.

Additionally, key international transit seaports such as Nam Đồ Sơn in Hải Phòng, Liên Chiểu in Đà Nẵng, Cần Giơ in HCM City, and Trần Đà in Sóc Trăng are also prioritised.

To ensure these projects are executed smoothly and on schedule, ministries, as well as central and local agencies, are urged to proactively enhance the quality of investment preparation. This includes thoroughly addressing potential challenges and ensuring that all necessary conditions are met for swift project execution. The goal is to minimise delays, avoid adjustments during implementation, and guarantee efficient investment that leads to the timely completion of critical infrastructure.

2025 is also a key deadline for major infrastructure projects initiated in the 2021-25 period, including the North-South Eastern Expressway and the Long Thành International Airport.

To meet these ambitious targets, authorities must ensure the timely availability of essential construction materials such as soil, stone, and sand to support crucial national and inter-regional transport projects.

As the economy undergoes significant changes in production methods and embraces digital transformation, the integration of information technology in project management and state administration has become an unavoidable trend.

To keep pace with this shift, studying and promoting the use of digital tools in managing public investment projects should be prioritised. 

Central to this effort is the adoption of a centralised data system, which will ensure greater transparency, accelerate project timelines, and improve the efficiency of investment capital management.

What do you expect from the progress of public investment disbursement after the amended draft Law on Public Investment, along with proposed revisions to the Laws on Planning, Investment, Public-Private Partnership (PPP) Investment, and Bidding, takes effect?

The National Assembly has passed the Law on Public Investment No 58/2024/QH15, along with amendments to several key laws, including the Law on Planning, the Law on Investment, the Law on Public-Private Partnership Investment, and the Law on Bidding. These reforms, aimed at enhancing the effectiveness and efficiency of law enforcement and public investment, came into effect on January 1, 2025. The legislative measures were identified as crucial tasks at the start of the 2021-25 term to strengthen institutions and drive economic growth.

The new laws are expected to provide greater flexibility and initiative to local governments and sectors in managing public investment. These changes are crafted to meet evolving needs and development challenges, ensuring that all levels of government can operate with greater efficiency.

The reforms also aim to clarify the roles, procedures, and authority involved in public investment, addressing previous ambiguities and challenges in implementation. Key measures include strengthening investment preparation, simplifying procedures and enhancing the disbursement of ODA and foreign loans.

Additionally, the new laws promote transparency, reduce delays in contractor and investor selection, and boost the attractiveness of public-private partnership investments.

These legislative changes are expected to significantly improve the quality and effectiveness of public investment, paving the way for increased capital disbursement from 2025 onwards. — VNS