The Vietnamese government has proposed a substantial VNĐ790 trillion ($31.13 billion) for public investment in 2025. With this ambitious target comes significant pressure on ministries, agencies, and localities to disburse funds effectively, placing a critical focus on project readiness and execution.
The government’s proposal, submitted to the National Assembly Standing Committee, highlights the growing demand for investment. With over VNĐ337.8 trillion earmarked from the central budget, and the remainder from local budgets, the country’s infrastructure and development goals face a pivotal moment.
Minister of Planning and Investment Nguyễn Chí Dũng emphasized that meticulous preparation is essential to ensure smooth implementation. “We will raise strong and drastic measures to promptly tackle existing roadblocks to disbursement,” Dũng noted. The minister stressed that the final year of the medium-term public investment plan for 2021-25 demands swift action, particularly for projects expected to be completed by year-end and those beginning soon after.
However, with disbursement rates at only 47.29% as of September 2024, there remains a formidable task ahead. The government’s goal to achieve a 95% disbursement rate—equating to VNĐ670 trillion—will require focused effort and coordination.
Adding to this, the National Assembly has pointed out that more flexible policies are needed. Deputy Chairman Nguyễn Khắc Định suggested that stagnant projects could see their capital reallocated to those demonstrating better progress, thereby ensuring funds are directed towards more viable and impactful developments.
Efforts to amend the Law on Public Investment are also underway, aiming to streamline processes and address existing inefficiencies. Such legal adjustments are anticipated to provide a more conducive framework for ministries and localities to act more decisively.
As Vietnam continues to prioritize key national projects, the burden of public investment disbursement is poised to become a litmus test for the government’s broader development strategy. In 2025, the ability to deploy funds effectively will not only determine the success of infrastructure projects but will also influence political dynamics and the distribution of future resources.
With the clock ticking, Vietnam’s ministries must navigate this high-stakes landscape to ensure that they not only meet the ambitious targets but also solidify their standing within the political hierarchy. Failure to do so may see the shifting of funds—and influence—elsewhere.
