Clarifications on the regulations regarding the overly detailed timeframe regulations for formulating and appraising medium-term public investment plans in Vietnam leading to a lack of proactivity
What are the bases for formulating medium-term and annual public investment plans in Vietnam?
Based on Article 47 of the Law on Public Investment 2019 which stipulates as follows:
“Article 47. Bases for formulating medium-term and annual public investment plans
1. Bases for formulating medium-term public investment plans include:
a) The situation and results of implementing the 5-year socio-economic development plan and the previous medium-term public investment plan;
b) Socio-economic development strategy; national, sectoral, field, and local 5-year socio-economic development plans; 5-year financial plans; 5-year public debt borrowing and repayment plans; investment priority objectives in the national, sectoral, field, and local 5-year plans;
c) Relevant planning according to the provisions of planning law;
d) Needs and forecasted ability to mobilize investment capital sources to build socio-economic infrastructure; the balance capacity of state budget capital;
dd) Forecasted impact of world and domestic situations on development and the ability to mobilize investment capital sources;
e) Mechanisms and policies to attract investment capital sources from different economic sectors to build socio-economic infrastructure.
2. Bases for formulating annual public investment plans include:
a) The situation and results of implementing the national, sectoral, field, and local socio-economic development plans; results of implementing the public investment plan of the previous year;
b) Annual socio-economic development plans;
c) Medium-term public investment plans;
d) Needs and ability to balance resources to invest in building socio-economic infrastructure in the planning year.”
The bases for formulating medium-term public investment projects and annual public investment projects are carried out according to the above-stated provisions.
Resolving questions about overly detailed timeframe regulations for formulating medium-term public investment plans leading to lack of initiative? (Image from the Internet)
What is the process for formulating and appraising medium-term public investment plans in Vietnam?
Based on Article 55 of the Law on Public Investment 2019 which stipulates as follows:
“Article 55. Process of formulating, appraising medium-term public investment plans
1. Before June 30 of the fourth year of the previous medium-term public investment plan, the Ministry of Planning and Investment shall formulate and submit to the Prime Minister for approval the orientations, criteria for allocating the projected medium-term public investment capital for Ministries, central agencies, and localities.
2. Before July 31 of the fourth year of the previous medium-term public investment plan, the Prime Minister shall issue a directive on formulating the next medium-term public investment plan with a projected total public investment capital equal to the total public investment capital of the previous medium-term public investment plan, and notify the projected total public investment capital for Ministries, central agencies, and localities as a basis for deciding the investment policies for programs and projects of the next period.
3. Before August 15 of the fourth year of the previous medium-term public investment plan, the Ministry of Planning and Investment shall guide Ministries, central agencies, and localities on the objectives, requirements, contents, time, and schedule for formulating medium-term public investment plans.
…
11. Before July 31 of the fifth year of the previous medium-term public investment plan, the Ministry of Planning and Investment shall consolidate the national medium-term public investment plan and report to the Government.”
Thus, the formulation and appraisal of medium-term public investment plans are carried out according to the sequence of regulations stated above.
What is the significance of the overly detailed timeframe regulations for formulating and appraising medium-term public investment plans in Vietnam?
Based on Section 16 of Official Dispatch 5015/CV-TCT in 2022 which has the following guidance:
“16. Article 55 of the Law on Public Investment stipulates an overly detailed timeframe for formulating medium-term public investment plans, leading to a lack of initiative.
Response:
The regulation of the timeframe for formulating, appraising medium-term public investment plans is to ensure uniform implementation across the country, ensure that Ministries, central agencies, and localities complete medium-term public investment plans reports so that Government agencies consolidate and report to the Standing Committee of the National Assembly and the National Assembly according to regulations. At the same time, according to the provisions of Article 55 of the Law on Public Investment, the timeframe intervals are reasonable enough for the Ministries, central agencies, and localities to perform the tasks of formulating, appraising, and reporting to the heads, People's Councils for opinions before sending consolidated reports to agencies.”
Thus, the regulation of the timeframe for formulating and appraising medium-term public investment plans aims to ensure uniform implementation among Ministries, central agencies, and localities to complete medium-term public investment plan reports.
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