HCMC – Prime Minister Pham Minh Chinh has set a target to achieve a disbursement rate of at least 95% of all public investments planned for this year, equivalent to over VND676 trillion.

He emphasized public investment was a resource and motivation for national development at the teleconference on the acceleration of public investment allocation and disbursement in 2023 as well as the socio-economic recovery and development program on February 21.

Chinh urged the relevant departments to speed up the disbursement of public investment and implement the socio-economic recovery and development program effectively.

The allocated amount of public investment capital is nearly VND711 trillion, or around VND130 trillion higher than in 2022.

That means the disbursement task is much heavier, requiring drastic action from the beginning of the year to fulfill the target of disbursing 95% of the allocated capital.

Chinh asked the relevant ministries, departments, sectors and local authorities to discuss the disbursement process, analyze influencing factors, learn from experience in the previous years, share effective methods and propose specific solutions to speed up the disbursement.

Without efforts at the beginning of 2023, the public investment disbursement will be slower than expected, resulting in cost overruns in publicly funded projects, a rise in the Incremental Capital Output Ratio and negative effects on national development, the PM said.

The Government also assigned relevant ministries to disburse the entire capital under the socio-economic recovery and development program in 2022.

The disbursement of public investment in 2022 saw positive results thanks to various policies and strict supervision from the Government.

As of January 31, over VND541 trillion of public investment capital allocated for 2022 had been disbursed, fulfilling 93.5% of the plan, with eight ministries and central agencies and 30 localities completing 100% of their targets, according to the Ministry of Planning and Investment.