Vietnam streamlines funding for national programmes

Vietnam streamlines funding for national programmes

The Ministry of Finance is stepping up efforts to disburse national target programme funds, ensuring efficient use of public investment to support local development and livelihoods.

As the two-tier local government model comes into operation, the task is not only to reorganise the administrative apparatus, but also to ensure that budget flows – particularly those earmarked for national target programmes – are managed smoothly and effectively.

To speed up disbursement and maximise the socioeconomic benefits of these funds at local level, the MoF has urged provincial and municipal people’s committees to direct their departments, agencies, and commune-level authorities to promptly review objectives, identify needs, and fully prepare investment dossiers and procedures.

This is a critical step to ensure that projects are ready for immediate implementation once funding is allocated, thereby minimising delays caused by procedural obstacles.

National target programmes are regarded as a ‘lever’ driving socioeconomic development

At the same time, the MoF has called on localities to prepare the necessary conditions to fully disburse national target programme funds in 2026, ensuring both timely progress and improved efficiency in the use of capital, and swiftly translating budgetary resources into real-world outcomes.

Notably, the MoF has clarified the mechanism for extending the implementation and disbursement period for unspent funds from 2025.

Accordingly, all state budget funds under national target programmes that remain undisbursed in 2025 may be carried over into 2026 and utilised through December 31.

Local authorities are then required to work closely with the State Treasury to carry out fund transfers, expenditure control, and disbursement in accordance with regulations. At the same time, they must focus on ensuring the effective use of carried-over funds to complete tasks under the 2021-2025 period.

Practical experience in many localities shows that, by closely following the MoF’s guidance, reviewing plans, and maintaining flexibility in implementation, national target programme funds have been disbursed effectively, forging noticeable improvements in people’s livelihoods.

In the northern highland province of Lao Cai, following the MoF’s guidance, Lao Cai People’s Committee has directed departments and agencies to review the entire project portfolio, particularly ongoing projects, while focusing on removing obstructions.

For livelihood development projects, Lao Cai has stepped up decentralisation to the commune level to ensure funds reach the intended beneficiaries, especially ethnic minority communities.

As a result, many essential infrastructure projects have been implemented on schedule, while community-based tourism models and value chain-linked agricultural production continue to deliver positive results, contributing to higher incomes for residents.

In the central province of Quang Nam, the implementation of national target programmes has been closely linked to investment preparation.

Project owners are required to complete procedures from the outset, minimising delays caused by incomplete documentation.

At the same time, the province has strengthened coordination with the State Treasury in capital payments to ensure smooth disbursement processes.

For funds carried over from 2025 to 2026, priority is given to ongoing projects that can be completed quickly, avoiding the fragmentation of resources. As a result, many rural infrastructure projects have been completed, helping transform rural landscapes and bolster people’s living standards.

Meanwhile, in the Mekong delta province of Soc Trang, authorities have focused on reviewing and categorising tasks in line with official guidance.

Completed projects have been promptly finalised, while those no longer suitable have been adjusted or halted, allowing resources to be concentrated on more effective initiatives.

Notably, Soc Trang has promoted the integration of funding sources to provide comprehensive support for residents, from housing and clean water to livelihoods.

Decentralisation, coupled with strengthened oversight, has helped ensure transparency and improve the efficiency of capital use. As a result, the living standards of many ethnic minority households have remarkably improved.

It is evident that the MoF’s guidance is not only aimed at resolving technical impediments in disbursement, but at achieving the broader goal of enhancing efficiency of capital.

The implementation of projects under national target programmes has generated substantial on-site employment for rural workers, particularly low-skilled labourers and ethnic minorities.

Beyond increasing incomes, these initiatives have facilitated a gradual shift in production methods, enabling people to participate in more effective economic models such as value chain-based production, community tourism, and rural services.

This, in turn, forms a critical foundation for sustainable livelihoods, advancing multidimensional poverty reduction and narrowing development gaps across regions.

VIR