Grounds for formulating medium-term and annual public investment plans in Vietnam from January 1, 2025

Grounds for formulating medium-term and annual public investment plans in Vietnam from January 1, 2025​ (Image from Internet)

What is a public investment plan?

A public investment plan is a set of objectives, directions, and a list of public investment programs and projects; it balances public investment funds, allocation plans, solutions for mobilizing resources, and implementation methods.

(Clause 19, Article 4 of the Law on Public Investment 2024)

Grounds for formulating medium-term and annual public investment plans in Vietnam from January 1, 2025

According to Article 50 of the Law on Public Investment 2024, the grounds for formulating medium-term and annual public investment plans from January 1, 2025, are defined as follows:

(1) Grounds for formulating medium-term public investment plans include:

- The situation and results of implementing the 5-year socio-economic development plan and the previous medium-term public investment plan;

- The socio-economic development strategy; the orientation or 5-year socio-economic development plan of the nation, sector, field, locality; the 5-year financial plan; the 5-year public debt borrowing and repayment plan; investment priorities in the 5-year plan of the nation, sector, field, locality;

- Relevant planning according to the law on planning;

- The demand and forecast of the ability to mobilize investment capital to build socio-economic infrastructure, and the ability to balance state budget capital;

- Forecast of the impact of the international and domestic situation on development and the ability to mobilize investment capital;

- Mechanisms and policies for attracting investment capital from economic sectors to build socio-economic infrastructure.

(2) Grounds for formulating annual public investment plans include:

- The situation and results of implementing the socio-economic development plan of the nation, sector, field, locality; results of implementing the previous year's public investment plan;

- The annual socio-economic development plan;

- The medium-term public investment plan;

- The demand and ability to balance resources to invest in building socio-economic infrastructure in the planning year.

Principles for formulating medium-term and annual public investment plans in Vietnam from January 1, 2025

The formulation of medium-term and annual public investment plans from January 1, 2025, must ensure the principles stipulated in Article 51 of the Law on Public Investment 2024. To be specific:

- Align with the development goals in the socio-economic development strategy, the 5-year and annual socio-economic development orientation or plan of the nation, sector, field, locality, approved planning, the 5-year financial plan, and the 5-year public debt borrowing and repayment plan.

- Align with the capability to balance public investment capital and attract investment capital from other economic sectors; ensure macro balance, prioritizing public debt safety.

- Allocation of public investment capital must adhere to the principles, criteria, and norms for allocating public investment capital for each approved period by competent authority.

- Prioritize capital allocation for sectors, fields, and territories according to objectives and development orientations of each period.

- Ensure openness, transparency, and fairness.

- Ensure centralized and unified management concerning objectives, mechanisms, and policies; implement decentralization in investment management to give proactive rights to Ministries, Central authorities, and localities according to legal regulations to enhance investment efficiency.

- The annual public investment plan must align with the approved medium-term public investment plan, excluding the first year's public investment plan.

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