The disbursement rate is relatively positive

Truong Hung Long, Director of the Department of Debt Management and External Finance (under the MoF), stated at the opening that the MoF, in collaboration with ministries, branches, and project owners, has been closely monitoring the disbursement of public investment capital from foreign sources since the beginning of the year. The disbursement of public investment capital from foreign sources has been identified as a key task at all levels, sectors, and project owners.

A view of the conference. Photo: Đức Minh

"The disbursement rate of public investment capital from foreign sources of ministries and sectors reached 27.2% (equivalent to 3,225 billion VND). This disbursement rate is positive, and it is far better than in 2021 and 2022" commented Mr. Truong Hung Long.

However, the representative of the Department of Debt Management and External Finance determined that the completed volume was not significant. As a result, it requires fierce determination and feasible solutions that are close to reality from now until the end of the year to achieve the goal of disbursing public investment capital

In terms of foreign source disbursements, 5 out of 11 ministries and branches (nearly equivalent to 47.42%) disbursed, including the Ministry of Agriculture and Rural Development, the Ministry of Transport, the Ministry of Natural Resources and Environment, the Ministry of Education and Training, and the Vietnam Academy of Science and Technology. However, disbursement was concentrated primarily in three ministries and branches namely the Vietnam Academy of Science and Technology (47.32%), the Ministry of Transport (30.97%), and the Ministry of Agriculture and Rural Development (30.56%). The remaining two ministries had extremely low disbursement, particularly the Ministry of Natural Resources and Environment was 4.19%; the Ministry of Education and Training was 5.26%.

According to information presented at the conference, there are currently six ministries failing to disburse (National University of Ho Chi Minh City and Vietnam National Unversity, Hanoi have just been approved on-lending conditions, signed sub-loan agreements and authorization contracts; The remaining units include Ministry of Construction, Ministry of Industry and Trade, Ministry of Defense, Ministry of Labor, Invalids and Social Affairs). Ministries and project owners, on the other hand, have developed detailed disbursement plans from June to the end of the year and January 2024.

According to the representative of the Central Project Management Office (Department of Debt Management and External Finance), the MoF has just recorded a total of 1,042,589 billion VND in 2022 foreign capital plans of ministries and branches that are left to extend to 2023’s. Currently, ministries and sectors have started to disburse the amount.

Synchronize solutions to complete the disbursement task in 2023

At the conference, representatives from ministries and branches reported on the disbursement of public investment capital from foreign sources, difficulties and problems encountered, and proposed solutions to accelerate capital disbursement.

Furthermore, Mr. Truong Hung Long noted that it is necessary to have synchronous and drastic solutions for the entire political system, the Government, ministries, branches, and localities to complete the task of 2023 disbursement.

The MoF expects ministries and branches to closely monitor and quickly direct project owners to solve problems to meet the disbursement target of 2023.

As a result, the MoF advises the Government and the Prime Minister to direct ministries and branches to implement solutions within their management as soon as possible and to work closely with relevant agencies to accelerate the disbursement of public investment capital, including ODA loans and foreign concessional loans.

The MoF requests that the managing agencies review the detailed allocation of estimates to each project, ensure the project's close progress and disbursement needs, and enter the project into the Tabmis system as soon as possible so that the projects have a basis for disbursement. In the event of an inability to disburse, the managing agency needs to cancel or transfer the cost estimate to a more available project.

It is especially recommended that managing agencies collaborate closely with the MoF, the Ministry of Planning and Investment, and other relevant agencies to promptly communicate with donors in case of arising problems, particularly with projects undergoing changes that necessitate the adjustment of investment policies and loan agreements. At the same time, the managing agencies shall report to the Government and the Prime Minister on arising problems, especially those related to regimes and policies, in order to accelerate the disbursement of projects; carry out periodic reports on the disbursement of ODA capital, and send them to the Ministry of Planning and Investment and the MoF under regulations.

When the competent authorities agree to extend the implementation time and the disbursement, it is critical for ministries managing O projects, particularly the Ministry of Agriculture and Rural Development, to handle the conditions for disbursement urgently and thoroughly.

Mr. Truong Hung Long stated that project owners must focus on implementing programs and projects to quickly have volume for disbursement; coordinate and closely monitor the project implementation of stakeholders based on the sources of loans, aid, and reciprocity; select qualified consultants with project design experience to ensure quality, consistency with reality, and avoid adjustments in the implementation process.