The fear of accountability for potential mistakes, caused by inconsistent and contradictory regulatory frameworks, has hindered public investment disbursement, experts noted.

The nation’s public investment disbursement was VNĐ232 trillion in the first seven months, or 32 per cent of the overall plan. 

The figure is lower than that of the same period last year, which was 35.5 per cent of the total plan.

The government has set a target that at least 95 per cent of the budget will be spent by the end of the year.

HCM City’s disbursement of public investment remains particularly sluggish, reaching only VNĐ11.8 trillion in the period, or nearly 15 per cent of the annual plan, which is below the national average.

The country’s largest economic hub aims this year to disburse 95 per cent of its allocated capital or VNĐ79 trillion, up VNĐ11 trillion year-on-year.

Nguyễn Ngọc Hòa, chairman of the HCM City Business Association, said accelerating public investment is important for job creation and economic growth. 

Trần Đình Thiên, a member of the National Financial and Monetary Policy Advisory Council, said Việt Nam is at a critical juncture where it urgently needs to accelerate public spending. 

However, the ongoing anti-corruption campaign has caused hesitation and uncertainty, hindering progress, he said. 

Earlier this month, Prime Minister Phạm Minh Chính issued a directive mandating the fulfilment of over 95 per cent of the national disbursement plan by year-end. 

He has urged agencies to develop specific disbursement plans, expedite investment and bidding processes, and speed up compensation and land clearance efforts.

Nguyễn Ngọc Hòa, who also serves as chairman of the city’s State Financial Investment Company, proposed increased engagement from the private sector in the development of public projects, rather than relying solely on state mechanisms.

“Allow the private sector to manage all procedures and approvals, with only the final acceptance required thereafter. This shift could streamline processes and enhance efficiency,” he said.

Trần Du Lịch, an economic expert, recommended decentralisation and a robust delegation of authority through a resolution approved by the National Assembly, which would empower the city to make critical decisions autonomously.

During a recent anti-corruption meeting, Party Chief and President Tô Lâm said anti-corruption efforts should facilitate socio-economic development rather than hinder it.

A government report showed that this year 14 central and 174 local officials have been dismissed due to corruption, including five members of the Politburo, the highest organ of the Party Central Committee. 

Disciplinary actions have imposed on 308 Party organisations and 11,005 members, with 47 officials subjected to disciplinary measures by higher Party bodies.

Investigations into nearly 3,000 corruption cases involving almost 6,000 defendants have been initiated, including significant violations at various big enterprises. 

As a result, up to VNĐ7.75 trillion ($309 million) has been recovered this year, bringing the total amount recovered to VNĐ85.5 trillion ($3.4 billion).

Despite multiple challenges facing it, Việt Nam’s economy expanded by 6.4 per cent in the first half of the year, driven by strong exports, robust foreign investment, and increased domestic consumption. — VNS