Public investment a driving force for the economy this year
Public investment a driving force for the economy this year
As of January 31, ministries, sectors and localities had allocated VNĐ741.1 trillion, reaching 89.7 per cent of the plan.
A highway in HCM City viewed from above. VNA/VNS Photo |
Public investment has been assigned to play a significant role in accelerating Việt Nam's socio-economic development, with a total public investment budget for 2025 set at VNĐ825.9 trillion (US$33.6 billion), according to the Ministry of Planning and Investment (MPI).
This budget has been approved by the National Assembly and assigned by the Prime Minister.
As of January 31, ministries, sectors and localities had allocated VNĐ741.1 trillion, reaching 89.7 per cent of the plan. Of this, the central budget accounted for VNĐ310.1 trillion (88.6 per cent allocated), while the local budget reached VNĐ431 trillion (90.6 per cent allocated).
A report by the General Statistics Office highlighted that investment activities in January 2025 focused mainly on budget allocation. Many newly funded projects were finalising preparation procedures, while ongoing projects made up most of the executed work.
Public investment disbursement in January 2025 was estimated at VNĐ35.4 trillion, equal to 4.1 per cent of the annual plan and marking a 9.6 per cent increase from the previous year (compared to a 16.9 per cent increase in January 2024). Investment managed by the central government reached VNĐ4.9 trillion, equal to 3.7 per cent of the plan, rising 1.3 per cent year-on-year.
Among key ministries, the Ministry of Transport disbursed VNĐ3 trillion, a decrease of 2.9 per cent on-year. The Ministry of Agriculture and Rural Development allocated VNĐ591.3 billion, reflecting an increase of 88.6 per cent. The Ministry of Health spent VNĐ107.6 billion, marking a rise of 186.9 per cent.
The Ministry of Education and Training disbursed VNĐ60.4 billion, up by 39.8 per cent. The Ministry of Culture, Sports and Tourism spent VNĐ45.1 billion, an increase of 20.3 per cent. The Ministry of Natural Resources and Environment disbursed VNĐ30.1 billion, up 6.4 per cent, while the Ministry of Information and Communications allocated VNĐ19.3 billion, an increase of 35.6 per cent.
Investment managed by local authorities reached VNĐ30.5 trillion, equivalent to 4.2 per cent of the plan, representing an 11 per cent increase compared to the same period in 2024.
Challenges
Despite progress, some challenges remain in budget allocation and disbursement. Minister of Planning and Investment Nguyễn Chí Dũng stressed that accelerating disbursement, especially for national target programmes, was essential for economic growth and development goals.
He called for stronger coordination among ministries, sectors and localities to address obstacles and ensure the effective use of investment resources.
Experts emphasised that early and detailed budget allocation is key to speeding up public investment disbursement. Well-prepared projects allow for smooth execution as soon as funds become available, preventing delays.
The new Public Investment Law, effective from early 2025, is expected to unlock resources and enhance investment efficiency. Deputy Minister of Planning and Investment Nguyễn Đức Tâm stated that the revised law strengthens decentralisation and reform, shifting from pre-approval to post-audit and granting localities greater autonomy and accountability.
“The amendments address urgent issues that have been tested in practice and need to be formalised into law,” he said.
Dr Nguyễn Quốc Việt, Deputy Director of the Institute for Economics and Policy Research, suggested increasing private sector involvement in infrastructure projects to ease the administrative burden on state agencies. He noted that if properly structured, partnerships with large private enterprises through models like build-transfer (BT) contracts could enhance project execution.
Minister Dũng outlined key measures to keep public investment a key driver of economic growth in 2025. He urged ministries, sectors and localities to act quickly to disburse funds efficiently. Key solutions include assigning leaders to oversee projects, resolving bottlenecks, enhancing decentralisation and ensuring clear accountability with strict monitoring and evaluation.
“All stakeholders must act with responsibility, creativity and determination. The Government’s task forces will continue to work closely with localities to remove obstacles and improve resource allocation,” he said.
Ministries must also guide local authorities on licensing procedures for mining and material extraction to ensure a stable supply for public projects. Close monitoring of the construction materials market will help balance supply and demand and stabilise prices.
