What is the priority order for allocating public investment capital from the state budget in Vietnam for the period 2026 - 2030?

What is the priority order for allocating public investment capital from the state budget in Vietnam for the period 2026 - 2030?

On February 7, 2025, the Standing Committee of the National Assembly issued Resolution 70/2025/UBTVQH15 stipulating the principles, criteria, and allocation norms for public investment capital from the state budget for the period 2026 - 2030, effective from April 1, 2025.

In Clause 8, Article 3 of Resolution 70/2025/UBTVQH15 regarding the priority order for allocation of public investment capital from the state budget for the 2026 - 2030 perio:

(1) Urgent public investment projects;

(2) National target programs, national important projects;

(3) Reimbursement of advance funds;

(4) Projects that have been completed and handed over but not yet sufficiently funded;

(5) Programs and projects using ODA funds, concessional foreign loans, including counterpart funds;

(6) State investment participation in PPP projects as per the legal regulations on public-private partnership investment; compensation, early termination of PPP project contracts authorized by competent authorities, payment of reduced revenue for PPP projects under the State's responsibility, payment according to BT project contracts in cash;

(7) Ongoing projects to be completed within the plan period;

(8) Ongoing projects implemented according to approved progression;

(9) Planning tasks, investment preparation tasks (funds allocated for preparatory tasks for projects expected to start construction in the 2026 - 2030 period, funds for preparatory tasks for projects expected to start in the 2031 - 2035 period);

(10) Payment of outstanding basic construction debt arising before January 1, 2015 (if any);

(11) Provision for preferential credit interest rates, management fees; provision of charter capital for policy banks, off-budget state financial funds; investment support for other subjects by decision of the Government of Vietnam or the Prime Minister of the Government of Vietnam;

(12) Allocation of local budget capital to implement preferential credit policies through the Social Policy Bank according to the resolution of the provincial People's Council;

(13) New projects commencement meeting the requirements as prescribed by the Public Investment Law.

Which regions in Vietnam are eligible for priority allocation for public investment capital from the state budget for the 2026 - 2030 period?

Also, in Article 3 of Resolution 70/2025/UBTVQH15 on general principles for allocation of public investment capital from the state budget for the period 2026 - 2030:

Article 3. General Principles for Allocation of Public Investment Capital from the State Budget for the Period 2026 - 2030

1. The allocation of public investment capital from the state budget for the period 2026 - 2030 must comply with the provisions of the Public Investment Law, the State Budget Law, and related legislative documents.

2. Ensure centralized and unified management concerning objectives, mechanisms, and policies; promote the role of public investment guiding private investment to attract and mobilize all social resources for development investment; strengthen decentralization, delegation of authority, review for maximum reduction of administrative procedures in investment management according to legal regulations, creating autonomy for Ministries, central agencies, and local authorities, abolishing bureaucratic subsidy, eradicating the "ask-give" mechanism.

3. The allocation of public investment capital from the state budget must serve the implementation of the country's objectives and development orientations outlined in the 10-year 2021 - 2030 Socio-Economic Development Strategy, the resolutions, conclusions of the Central Executive Committee of the Communist Party, Politburo, the 5-year 2026 - 2030 Socio-Economic Development Plan of the nation, sectors, fields, localities, the national 5-year financial plan, the 5-year public debt borrowing and repayment plan for the period 2026 - 2030, ensuring fast, sustainable development goals harmonizing economy and society.

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7. Prioritize allocation of funds to mountainous regions, border areas, islands, regions inhabited by ethnic minorities, and particularly difficult regions frequently affected by natural disasters, contributing to narrowing development, income, and living standard gaps of residents between regions throughout the country.

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Thus, during the period 2026 - 2030, public investment capital from the state budget will be prioritized for allocation to mountainous regions, border areas, islands, regions inhabited by ethnic minorities, difficult, and particularly difficult regions.

Concurrently, areas frequently affected by natural disasters will also be emphasized, contributing to narrowing development gaps and improving the income and living standards between regions nationwide, aiming towards sustainable socio-economic development in Vietnam.

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