The ambitious target of achieving GDP growth of 8% or higher underscores the government's strong commitment to propelling the nation towards a new era of prosperity. This initiative signals a decisive push for structural improvements, strategic investments, and enhanced fiscal policies to sustain long-term growth and development.
Striving for 95% Public Investment Disbursement
The National Assembly has set a clear objective: accelerating the disbursement of public investment (PI) funds in 2025, with a target of reaching at least 95% of the planned budget. Special mechanisms and policies are to be introduced to support large-scale and strategic projects. If necessary, the government may adjust the state budget deficit to approximately 4 - 4.5% of GDP, while public debt, government debt, and external national debt could reach or even exceed the warning threshold of around 5% of GDP.
It is evident that public investment plays a pivotal role in driving economic growth, particularly in the completion of modern and synchronised strategic infrastructure. However, the fundamental issue remains the efficiency of public investment fund disbursement. Only through effective allocation and spending can public investment contribute to economic stability, balance macroeconomic factors, and generate employment and livelihoods for the populace. This requires a commitment to eliminating bureaucratic delays and fostering a more transparent and accountable investment process.
MP Trinh Xuan An (Dong Nai) emphasised that achieving the 8% growth target requires a significant boost in private investment and setting growth indicators for each locality. Echoing this view, MP Duong Khac Mai (Dak Nong) stated: “Public investment in 2025 is one of the key pillars of economic growth. It is crucial to implement concrete solutions and enforce accountability to reform public investment management and ensure the disbursement of allocated capital.”
Despite persistent efforts by the government and the Prime Minister, delays in public investment disbursement have remained a challenge over the years. It is therefore imperative to conduct a thorough assessment to determine the underlying causes, particularly in terms of institutional constraints and stakeholder responsibilities, to develop comprehensive solutions that will put an end to these inefficiencies.
MP Tran Anh Tuan (Ho Chi Minh City) highlighted the necessity of resolving bottlenecks in stagnant projects, particularly major urban developments. He called for precise solutions and swift intervention from government task forces to unlock investment potential. Moreover, investment procedures for new projects must be expedited to ensure timely fund allocation into the economy. In Ho Chi Minh City alone, numerous projects require urgent action, including transport infrastructure, urban railway systems, Can Gio Port, the HCMC International Financial Centre, and the Ring Road 4 project. These initiatives should be prioritised with streamlined procedures to facilitate rapid implementation.
Focused Investment, Not Dispersed Spending
During the group discussions at the Ninth Extraordinary Session, Prime Minister Pham Minh Chinh underscored the importance of boosting public investment by focusing on three strategic breakthroughs: institutional reform, infrastructure development, and human resource enhancement. He emphasised the principle of resolving issues as they arise and ensuring immediate solutions to investment obstacles.
Key strategic infrastructure projects, such as the North-South high-speed railway, the Lao Cai-Hanoi-Hai Phong railway connecting with China, and digital, healthcare, and educational infrastructure, are set for accelerated implementation in 2025. The government has also proposed special mechanisms to expedite projects while minimising costs and preventing budget overruns. Simultaneously, stringent oversight will be enforced to prevent corruption and financial mismanagement.
The responsibility now lies with ministries and local authorities to act decisively and accelerate public investment disbursement to meet the set growth targets. The government has called for swift and focused action, ensuring investment is concentrated on high-impact projects rather than being spread too thinly across multiple initiatives.
To achieve the ambitious goal of disbursing over 95% of public investment funds in 2025, the Prime Minister has directed ministries and local governments to regard public investment allocation and disbursement as a top political priority. Every level of governance must take a proactive role in execution and oversight.
The Prime Minister has mandated that the entire public investment budget for 2025 be fully allocated by the end of the first quarter, in strict compliance with regulations. Any failure to do so will result in the government reallocating funds to more urgent projects requiring immediate capital injection.
Furthermore, he has emphasised the need to enforce discipline and accountability. Any investors, project management units, organisations, or individuals deliberately delaying investment allocation or disbursement will face strict penalties. Ineffective or obstructive officials will be promptly replaced, while any acts of corruption or financial misconduct in public investment management will be dealt with rigorously.
Ensuring efficient public investment is not merely a short-term objective but a fundamental requirement for Vietnam’s sustainable economic trajectory. Effective public investment strategies contribute not only to GDP growth but also to long-term national development by enhancing connectivity, industrial productivity, and social welfare.
The ongoing efforts to streamline bureaucratic processes, enforce accountability, and prioritise impactful projects will determine Vietnam’s ability to sustain its economic momentum. Moreover, fostering private sector participation in major infrastructure projects through public-private partnerships (PPPs) will further bolster economic resilience.
As Vietnam embarks on an ambitious journey of economic transformation, the successful execution of public investment will be a determining factor in sustaining growth and national development. The government’s firm stance on accountability and efficiency underscores the urgency of ensuring that every public investment initiative translates into tangible progress for the country and its people. By aligning strategic investments with economic objectives, Vietnam is positioning itself as a formidable player in the global economy, ready to seize new opportunities and overcome emerging challenges.
