General principles for allocating public investment capital from the state budget in Vietnam for the 2026 - 2030 period

General principles for allocating public investment capital from the state budget in Vietnam for the 2026 - 2030 period (Internet image)

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

General principles for allocating public investment capital from the state budget in Vietnam for the 2026 - 2030 period

Article 3 of Resolution 70/2025/UBTVQH15 stipulates the general principles for the allocation of public investment capital from the state budget for the period 2026 - 2030 as follows:

- The allocation of public investment capital from the state budget for the period 2026 - 2030 must comply with the regulations of the Public Investment Law 2024, State Budget Law 2015, and related legal documents.

- Ensure centralized and unified management regarding objectives, mechanisms, and policies; promote the role of public investment in leading private investment to attract and mobilize all social resources for development investment; strengthen decentralization, review and minimize administrative procedures in investment management according to legal regulations, create autonomy for Ministries, central agencies, and local governments, eliminate red tape and the "ask-give" mechanism.

- The allocation of public investment capital from the state budget must serve to achieve the country's development goals and directions in the 10-year Socio-Economic Development Strategy 2021 - 2030, resolutions, and conclusions of the Communist Party Central Committee, the Politburo, the 5-year Socio-Economic Development Plan 2026 - 2030 of the nation, sectors, fields, localities, the national 5-year financial plan, the 5-year public debt repayment plan for the period 2026 - 2030, and approved master plans, ensuring rapid, sustainable development goals, harmonizing economic and social aspects.

- Align with the ability to balance investment capital from the state budget in the 5-year financial plan for the period 2026 - 2030, ensuring macroeconomic balance targets, public debt safety. Promote public investment restructuring, reasonably calculate the structure of central and local budget resources, ensuring the central budget plays a leading role; strengthen the mobilization of non-state budget capital, promote the attraction of social capital to implement infrastructure investment projects.

- Allocate capital centrally, not dispersedly or spread thinly; ensure effective use of capital. Improve the quality of investment preparation work. Only allocate capital for programs, tasks, and projects that meet the conditions as prescribed by the Public Investment Law 2024 and related legal documents. The allocation time for project implementation must comply with the regulations in Article 57 of the Public Investment Law 2024.

- Focus on prioritizing capital allocation to implement, accelerate, and complete projects under national target programs, key national projects, expressway projects, high-speed rail projects, urban railway, inter-regional connectivity projects, projects that promote rapid, sustainable socio-economic development; science, technology development programs, innovation, digital transformation, nuclear energy, atomic, semiconductor microchips; national defense, security, justice, education, high-quality human resource training, public health protection and care, environmental protection, climate change adaptation, disaster prevention and mitigation, riverbank and coastline erosion, drought, saltwater intrusion, sea level rise, ensuring energy security, water security, food security, and green transition.

- Prioritize capital allocation for mountainous, border, island areas, ethnic minority regions, difficult, especially difficult areas, regions frequently affected by natural disasters, contributing to narrowing the development, income, and living standards gap among regions across the country.

- The order of priority for the allocation of public investment capital from the state budget for the period 2026 - 2030 is as follows:

+ Urgent public investment projects;
+ National target programs, key national projects;
+ Reimbursement of advance capital;
+ Completed projects that have been handed over for use but lack sufficient funding;
+ Programs and projects using ODA funds, foreign concessional loans, including counterpart funds;
+ State investment participating in implementing PPP projects pursuant to the law on investment under the public-private partnership method; compensation, termination of PPP project contracts before maturity authorized by the competent authority, payment for reduced revenue shares of PPP projects under state responsibility, payment under BT project contracts with money;
+ Ongoing projects to be completed within the plan period;
+ Ongoing projects implemented according to the approved schedule;
+ Planning tasks, investment preparation tasks (funds allocated for investment preparation tasks for projects expected to start in the period 2026 - 2030, funds allocated for investment preparation tasks for projects expected to start in the period 2031 - 2035);
+ Payment of build-up construction debts incurred before January 1, 2015 (if any);
+ Subsidizing preferential credit interest rates, management fees; charter capital allocation for policy banks, non-budget state financial funds; investment support for other subjects according to the decision of the Government or the decision of the Prime Minister;
+ Budget allocation for local governments to implement preferential credit policies through the Social Policy Bank according to the resolution of the provincial people's council;
+ New start projects meeting the requirements stipulated by the Public Investment Law 2024.

- Ensure public, transparent, and fair allocation of investment capital, contributing to promoting administrative reforms and strengthening anti-corruption measures, practicing thrift, and combating wastefulness.

View more Resolution 70/2025/UBTVQH15 which comes into effect from April 1, 2025.

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