Continuing to leverage public investment as a key pillar

Effective public investment contributes to promoting economic recovery and development. Photo: H.D

Achieving over 51% of the plan for the first time

Regarding the growth drivers in the first nine months of the year, Nguyen Thi Huong, the General Director of the General Statistics Office, noted that in the context of the ongoing domestic economic difficulties, which are influenced by both internal and external factors, the domestic production and business environment has been showing a tendency to decelerate due to negative influences such as ongoing high global inflation, unresolved political conflicts, and stringent monetary policies in many countries that continue to impact businesses. Additionally, trade and investment from other countries and a decline in export markets have affected economic growth. Despite these challenges, the economic growth rate for the third quarter of 2023 reached 5.33%, surpassing the growth rates of the first quarter (3.32%) and the second quarter (4.14%). This demonstrates that many government policies and solutions, which were resolutely implemented right from the beginning of the year under the strong direction of the government and the Prime Minister, have started to yield positive results. Notably, the determined efforts of ministries, sectors, and localities to vigorously execute public investment capital from the early months of the year, particularly in the third quarter of 2023, have been a shining success and a significant driving force for boosting economic growth in the third quarter and the first nine months of 2023.

According to this, the State budget (public investment) in the third quarter of 2023 is estimated to reach nearly VND183 trillion, equal to 25.3% of the annual plan, a 30.1% increase compared to the second quarter and a 27.3% increase from the same period last year. Over the course of the first nine months of 2023, the State budget capital is projected to reach nearly VND415.5 trillion, equal to 57.4% of the annual plan, and a 23.5% increase from the previous year. It's worth noting that by the end of September, the disbursement rate for public investment is estimated to exceed 51% of the plan, marking the first time the nation has exceeded the 50% disbursement milestone for public investment in the first nine months.

Specifically, as of the end of September 2023, public investment disbursement was estimated to reach over VND363 trillion, equal to 51.38% of the plan, which is approximately VND110 trillion higher than the same period in 2022, corresponding to a 46.7% increase. This is positive news for one of the three pillars of economic growth in our country, alongside domestic consumption and exports. Prior to this, by the end of June 30, 2023, the nation had only disbursed nearly VND216 trillion in public investment capital, reaching approximately 30.49% of the plan, which is roughly VND65 trillion higher than the same period in 2022, a 27.75% increase.

Deputy Minister of Planning and Investment Tran Quoc Phuong stated that unlike previous years, the public investment plan for 2023 is substantial, amounting to about VND711 trillion, encompassing both the annual plan for 2023 and additional funds from the Economic and Social Development Recovery Program under Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Economic and Social Development Recovery Program.

Therefore, it's evident that the significant increase in public investment disbursement in the first nine months of 2023, about VND110 trillion higher than the same period in 2022, reflects the resolute guidance from the government, the Prime Minister, and the determination of ministries, sectors, and localities in accelerating the progress of project implementation from the early months of the year, especially during the third quarter, to boost economic growth in the third quarter and the first nine months of 2023, as well as for the entire year.

Review and evaluate the implementation and disbursement of each project

To achieve these results, many important projects, inter-regional projects with ripple effects are being expedited in their implementation. This reflects the tremendous efforts of the government, the Prime Minister, central authorities, and localities in disbursement of public investment. In the third quarter of 2023, many new projects for the year have completed their investment preparation procedures and are being implemented. This signals a breakthrough in the disbursement of public investment for the remaining months of the year and serves as a basis for central authorities and localities to achieve the target of disbursing 95% of this year's public investment plan. This will compensate for the low growth in some sectors affected by the global economic slowdown and contribute to maximizing the economic growth target for 2023.

To promote the implementation of public investment in the last three months of 2023, the General Statistics Office Director, Nguyen Thi Huong, believed it was essential to focus on completing the legal framework regulating all stages of public investment projects, from investment preparation to project execution, completion, settlement, and handover for use. This should encompass various areas, including land, environmental protection, bidding, construction, natural resources, and minerals. Delays at any stage can affect the entire project, undermine investment efficiency, and reduce growth momentum.

Additionally, government ministries, sectors, and localities need to closely and resolutely implement government resolutions and directives from the Prime Minister regarding the acceleration, execution, and disbursement of public investment, the three national target programs for 2023, and the Economic and Social Development Recovery Program.

Simultaneously, efforts to disburse funds should be coupled with ensuring the quality and effective utilization of public investment. Reviewing and evaluating the implementation and disbursement capabilities of each project should be proactive and immediate. This will allow for adjustments to reallocate funds from projects with slow disbursement to well-disbursed projects that are lacking funds, following the prescribed regulations, to ensure full implementation and disbursement of the allocated funds.

Furthermore, there's a need to harmonize funds between the Economic and Social Development Recovery Program and the medium-term public investment plan for 2021-2025. This ensures the complete implementation of all funds from the Economic and Social Development Recovery Program in 2023 according to Government Resolution No. 10/NQ-CP.