Hanoi – Vietnam is prioritizing public investment as a key driver of socio-economic development, with a substantial budget of VNĐ825.9 trillion (US$33.6 billion) allocated for 2025, as confirmed by the Ministry of Planning and Investment (MPI). This figure has received the green light from the National Assembly and Prime Minister.
As of January 31, ministries, sectors, and localities had assigned VNĐ741.1 trillion, representing 89.7% of the planned allocation. This breaks down into VNĐ310.1 trillion (88.6%) from the central budget and VNĐ431 trillion (90.6%) from local budgets.
A recent report from the General Statistics Office highlighted that January's investment activities primarily focused on budget allocation. While many new projects were still in the preparatory phase, ongoing projects constituted the majority of executed work.
Public investment disbursement in January 2025 reached an estimated VNĐ35.4 trillion, equivalent to 4.1% of the annual plan. This marks a 9.6% year-on-year increase, compared to a 16.9% rise in January 2024. Central government-managed investment reached VNĐ4.9 trillion (3.7% of the plan), a modest 1.3% increase year-on-year.
Disbursement varied across ministries. The Ministry of Transport disbursed VNĐ3 trillion (a 2.9% decrease), while the Ministry of Agriculture and Rural Development disbursed VNĐ591.3 billion (an 88.6% increase). Significant increases were also seen in the Ministry of Health (VNĐ107.6 billion, up 186.9%), the Ministry of Education and Training (VNĐ60.4 billion, up 39.8%), and the Ministry of Culture, Sports and Tourism (VNĐ45.1 billion, up 20.3%).
Local authority-managed investment reached VNĐ30.5 trillion (4.2% of the plan), an 11% increase compared to the same period last year.
Despite this progress, challenges persist. Minister of Planning and Investment Nguyễn Chí Dũng emphasized the critical need to accelerate disbursement, particularly for national target programs, to achieve economic growth and development objectives. He stressed the importance of enhanced coordination among ministries, sectors, and localities to overcome obstacles and ensure efficient resource utilization.
Experts underscored the importance of early and detailed budget allocation for swift public investment disbursement. Well-prepared projects enable seamless execution once funding is available, preventing delays.
The newly enacted Public Investment Law, effective from early 2025, is expected to unlock resources and improve investment efficiency. Deputy Minister of Planning and Investment Nguyễn Đức Tâm explained that the revised law promotes decentralization and reform, shifting from pre-approval to post-audit, granting localities greater autonomy and accountability.
Dr. Nguyễn Quốc Việt, Deputy Director of the Institute for Economics and Policy Research, suggested greater private sector involvement in infrastructure projects to alleviate the administrative burden on state agencies. He pointed to build-transfer (BT) contracts with large private enterprises as a potentially beneficial model.
Minister Dũng outlined key measures to maintain public investment as a primary economic driver in 2025. He urged swift action from ministries, sectors, and localities to efficiently disburse funds. Key solutions include assigning project leaders, addressing bottlenecks, enhancing decentralization, and ensuring clear accountability with rigorous monitoring and evaluation.
“All stakeholders must act with responsibility, creativity, and determination,” stated Minister Dũng. “Government task forces will continue to collaborate closely with localities to remove obstacles and improve resource allocation.”
Ministries are also tasked with guiding local authorities on licensing procedures for mining and material extraction to ensure a stable supply for public projects. Continuous monitoring of the construction materials market will help balance supply and demand, stabilizing prices.
[Copyright (c) Global Economic Times. All Rights Reserved.]
