Public investment disbursement gathers pace, but bottlenecks persist

Public investment disbursement gathers pace, but bottlenecks persist

Public investment disbursement has accelerated sharply in recent weeks, providing support for economic growth despite ongoing global uncertainties.

A section of the Biên Hòa–Vũng Tàu Expressway is nearing completion. — Photo baochinhphu.vn

Public investment spending has gathered momentum in recent weeks, reinforcing its role as a key driver of economic growth as global trade and financial uncertainties continue to weigh on traditional growth engines.

Recent data from the Ministry of Finance shows that public investment disbursement reached VNĐ227.2 trillion (US$8.6 billion) as of June 4, equivalent to 22.4 per cent of the annual target assigned by the Prime Minister.

This figure marked a sharp increase from the VNĐ198.4 trillion recorded as of May 28, meaning nearly VNĐ28.8 trillion was disbursed in just one week, 1.8 times higher than the amount disbursed in the previous week, signalling a notable acceleration in spending.

Public investment has become increasingly important as policymakers seek to sustain economic growth amid external headwinds, including elevated global interest rates, exchange rate volatility, rising energy prices and growing uncertainty in international trade.

The Government has allocated more than VNĐ1 quadrillion for public investment in 2026, one of the largest spending programmes on record.

Economists view public investment as a crucial source of domestic demand and one of the few growth drivers policymakers can directly influence, particularly as exports face mounting pressure from global economic uncertainty.

Although the disbursement ratio remains relatively modest, the total amount of capital injected into the economy has risen significantly. At the end of May, disbursed capital had increased by nearly VNĐ34.8 trillion compared with the same period last year.

However, progress remains uneven.

Ministry data shows that 26 ministries and central agencies, along with 19 localities, still report disbursement rates below the national average.

Phan Đức Hiếu, a permanent member of the National Assembly's Economic and Financial Committee, said the Government's goal of achieving a 100 per cent disbursement rate this year would be challenging given persistent implementation obstacles.

"There is no single reason behind delays," Hiếu said, noting that each project faces different circumstances depending on location, scale and local conditions.

Land clearance remains a major hurdle for many projects, while shortages of construction materials and rising material costs have emerged as increasingly common concerns.

According to Hiếu, contractors have also sought adjustments to project budgets as input costs continue to rise, creating pressure on project implementation and financing plans.

If these bottlenecks can be addressed, the pace of disbursement could improve considerably in the coming months, he said.

Nguyễn Xuân Thành, a senior lecturer at the Fulbright School of Public Policy and Management, said a 95 per cent disbursement rate is within reach, as many major projects have moved beyond land clearance and stepped into final construction stages, reducing some of the obstacles that delayed implementation in previous years.

Despite the improving national picture, some local authorities continue to struggle.

In northern Tuyên Quang Province, public investment disbursement had reached only 22.4 per cent of the local plan by mid-year, despite repeated directives from provincial authorities.

Provincial leaders attributed delays partly to difficult terrain, land clearance challenges and rising material costs. However, they also acknowledged that some agencies, local administrations and contractors had not acted with sufficient urgency in implementing assigned tasks.

While public investment is helping support growth amid external uncertainty, experts say faster project implementation and the removal of local bottlenecks will be key to meeting the Government's disbursement targets. 

Bizhub