OVER VND219 TRILLION IN PUBLIC INVESTMENT DISBURSED

An expressway is under construction in southern Vietnam - PHOTO: LE VU

HCMC – As of May 31, Vietnam had disbursed VND219.358 trillion in public investment funds, equivalent to 21.6% of the annual plan.

While the disbursement rate was unchanged from the same period last year, the result came against a record public investment target of VND1.08 quadrillion for 2026. In absolute terms, the amount disbursed was nearly VND34.82 trillion higher than a year earlier.

The increase reflects substantial efforts by ministries, agencies and local governments, given that this year’s capital allocation was around VND175 trillion higher than in 2025.

The figures were released by the Ministry of Finance on June 3 in its latest report on the implementation and disbursement of public investment funds in 2026. Of the total amount disbursed, more than VND70.64 trillion came from the central budget, representing 19.4% of the annual plan, while local-budget disbursements reached VND148.715 trillion, or 22.9% of the target.

Regarding capital allocation, ministries, agencies and localities had assigned more than VND1 quadrillion to specific projects, equivalent to 97.8% of the plan approved by the prime minister. However, VND22.73 trillion allocated to 12 ministries and central agencies, as well as 12 localities, has yet to be assigned to individual projects.

The delays are mainly attributed to investment procedure bottlenecks and ongoing efforts to transfer funds to agencies and localities with stronger demand and faster project implementation.

To accelerate disbursement in the remaining months of the year, the Ministry of Finance has urged ministries, agencies and local governments to strictly implement government directives and strengthen the accountability of project leaders in resolving obstacles on the ground. According to the ministry, public investment disbursement this year continues to face a range of internal and external challenges.

The biggest hurdle remains site clearance, including land-origin verification and compensation planning. In addition, shortages of construction materials and price increases beyond initial estimates have widened cost gaps, forcing some projects to pause and revise contracts.

Meanwhile, limited implementation capacity among some project management units and contractors has also slowed progress. During the first months of the year, many investors focused on completing project designs and tender procedures, resulting in a relatively low volume of completed work eligible for payment.

To address these issues, the Ministry of Finance said it would strengthen discipline in public investment management and impose stricter penalties on organizations and individuals responsible for project delays.

The Ministry of Construction will work with local authorities to closely monitor market developments and take action against material-price manipulation. The ministry also requires agencies and localities to regularly update disbursement data on the Ministry of Finance’s information system, supporting the operation of a KPI-based monitoring tool designed to provide timely and accurate assessments of public investment flows nationwide.

Source: The Saigon Times