HCMC PUBLIC INVESTMENT DISBURSEMENT REACHES 60% OF FULL-YEAR TARGET

Workers and machinery operate on a section of a public infrastructure project in Vietnam - PHOTO: VGP

HCMC – HCMC has disbursed about 60% of its public investment plan assigned by the prime minister as of late November, reported the Vietnam News Agency.

The city was tasked with disbursing more than VND120.3 trillion this year, including VND16.7 trillion from the central budget and nearly VND103.7 trillion from the local budget. It has allocated a total of VND153.6 trillion, 28% higher than the amount assigned.

Data from the Vietnam State Treasury’s Region 2 showed that VND71.7 trillion had been disbursed by November 28, equivalent to 59.6% of the plan.

The city government said 2025 is the first year the city is operating under the new Public Investment Law No. 58/2024/QH15. But the Government had not issue Decree 85/2025/ND-CP, which provides detailed implementation guidelines, until April.

Another law, No. 90/2025/QH15, which amends several statutes, including the Public Investment Law, took effect on June 25. Its guiding decree, however, was only released on October 18.

The city said the late issuance of these documents slowed project appraisal, investment approvals and adjustments, and affected the management of public investment projects.

Administrative restructuring and the shift to a two-tier local government model caused additional delays. Project management units were reorganized, while legal procedures for investors and capital allocation required more time. Disbursement in July and August reached less than 1% of the assigned capital.

Several commune-level authorities, newly designated as project investors, also lacked dedicated project management units and clear guidance on responsibilities. Some projects were paused for review to reassess investment needs, adjust scope, or revise standards. Others are being considered for capital cuts due to no remaining demand.

Land clearance, relocation of technical infrastructure, unstable construction material supply, and weak oversight at some project owners further slowed progress.

At a city council session on December 10, HCMC Chairman Nguyen Van Duoc acknowledged the delays and said the city would not avoid responsibility. He said the current disbursement rate remains below targets of 75% by the third quarter of 2025 and 100% by year-end.

Some agencies returned capital because they could not spend it, while others with complete documents were not allocated funds, he said.

Based on reports from departments, agencies and investors, the city expects to disburse VND123 trillion by the end of the fiscal year on January 31, 2025, or 102.2% of the prime minister’s plan and 80.1% of the city’s plan.

HCMC will focus on major projects, especially those involving large compensation packages that must continue disbursement through January 2026.

Duoc told departments and relevant authorities to complete investment preparation documents for major projects before year-end to allow early capital allocation and construction in 2026. He said the city expects a busy construction schedule next year as multiple large projects move forward.

Source: The Saigon Times