Public investment was a major driver for economic growth last year in the context of the COVID-19 pandemic. (Photo: VNA)Lastyear saw the highest public investment disbursement rate in 2016-2020 as the Governmentidentified public investment as a major driver for growth in the context of theCOVID-19 pandemic.
TheMinistry of Planning and Investment estimated the public investmentdisbursement rate would reach more than 90 percent of the plan as of the endJanuary 31 (the deadline fordisbursement of 2020 public investment), compared to 73.3 percent of 2017, 66.8percent of 2018 and 67.46 percent of 2019.
Therewere 17 ministries, central-level agencies and 17 localities with disbursementrates of more than 80 percent as of December 31, 2020. However, 13 ministriesand central-level agencies and five localities had disbursementrates below 60 percent.
Accordingto Nguyen Manh Quyen, Vice Chairman of the Hanoi People’s Committee, thecapital city disbursed about 40.7 trillion VND worth of public investment or 93percent of the plan.
HoChi Minh City disbursed 31.5 trillion VND of public investment in 2020,1.7 times higher than 2019, said Le Thi Huynh Mai, Director of the municipalDepartment of Planning and Investment.
Thesefigures showed that never before was public investment disbursement as quickand strong as in 2020, said DeputyMinister of Planning and Investment Tran Quoc Phuong.
“Itis public investment that drove GDP growth in 2020,” he said.
Phuongpointed out that total social investment accounted for 34 percent of GDP andpublic investment 25 percent of the total social investment, meaningpublic investment made up about 6-7 percent of GDP.
“Takinginto account the impacts of public investment, public investment plays a reallyimportant role in growth,” Phuong said.
Despitethis progress, speeding up the disbursement of public investment remains apriority in 2021.
Phuongsaid that the Law on Public Investment No 39/2019/QH14 which took effect from thebeginning of this year would help tighten management of the entire processof public investment. In addition, the decentralisation of management wouldalso be enhanced together with increasing accountabilities for higherefficiency of public investment.
Withthe new regulations, plans for public investment would also be more accurateand practical, Phuong said.
Sumswhich were failed to be disbursed would be deducted from the medium-term publicinvestment plan, he said.
Therewere always differences between plans and real implementation but “don’t letthe gap be too big,” Phuong said.
In2021, the ministry will regularly update about the progress of publicinvestment disbursement to give a timely push to the progress, he added./.
VNA
