Public investment was regarded as the engine of growth in the context that the COVID-19 pandemic was heavily weighing on socio-economic development. (Photo: laodongthudo.vn)Hanoi (VNS/VNA) - Boosting the disbursement of all planned public investment would help increasethis year’s gross domestic product (GDP) by 0.42 percentage points, accordingto the General Statistics Office (GSO).
The Vietnamese Government has identified public investment asthe engine for growth to offset the growth gap caused by the COVID-19 pandemic.
GSO Director Nguyen Bich Lam said that boosting public investmentwould be an efficient solution to lift economic growth, estimating that everyincrease of one percent in public investment disbursement would push up GDP by0.06 percentage points.
In recent years, the disbursement rate of public investmentwere around 92-93 percent of the plan. If that rate reached 100 percent, GDPthis year would increase by 0.42 percentage points.
Lam saidthat focus should be placed on handling bottlenecks in land policies andadministrative procedures to boost public investment disbursement, especiallyfor key and large-scale projects which would contribute to the economy’s productioncapacity such as the projects to expand Tan Son Nhat and Noi Bai international airports, the constructionof Long ThanhInternational Airport and the North-South expressway.
GSO statistics showed that the realised investment in theeconomy was estimated to total 367.9 trillion VND (415.85 billion USD), representing an increase of just 2.2percent in the first quarter of this year, the lowest rate in the 2016-2020 period.
In comparison, disbursed State capital rose by 13.2 percent,a relative high rate in the context of the COVID-19 pandemic, reflecting theGovernment’s determination to boost the disbursement of public investment, theGSO said.
State capital accounts for 30.5 percent of the totalinvestment in the Vietnamese economy. It was estimated that around 700quadrillion VND inpublic investment would be disbursed this year./.
The Vietnamese Government has identified public investment asthe engine for growth to offset the growth gap caused by the COVID-19 pandemic.
GSO Director Nguyen Bich Lam said that boosting public investmentwould be an efficient solution to lift economic growth, estimating that everyincrease of one percent in public investment disbursement would push up GDP by0.06 percentage points.
In recent years, the disbursement rate of public investmentwere around 92-93 percent of the plan. If that rate reached 100 percent, GDPthis year would increase by 0.42 percentage points.
Lam saidthat focus should be placed on handling bottlenecks in land policies andadministrative procedures to boost public investment disbursement, especiallyfor key and large-scale projects which would contribute to the economy’s productioncapacity such as the projects to expand Tan Son Nhat and Noi Bai international airports, the constructionof Long ThanhInternational Airport and the North-South expressway.
GSO statistics showed that the realised investment in theeconomy was estimated to total 367.9 trillion VND (415.85 billion USD), representing an increase of just 2.2percent in the first quarter of this year, the lowest rate in the 2016-2020 period.
In comparison, disbursed State capital rose by 13.2 percent,a relative high rate in the context of the COVID-19 pandemic, reflecting theGovernment’s determination to boost the disbursement of public investment, theGSO said.
State capital accounts for 30.5 percent of the totalinvestment in the Vietnamese economy. It was estimated that around 700quadrillion VND inpublic investment would be disbursed this year./.
VNA
