Disbursement of public investment capital is currently considered by the State as one of the optimal solutions to contribute to economic promotion and growth in the context of the impact of the Covid-19 epidemic. So, how are Vietnam’s regulations on this solution?
Article table of contents
1. What is disbursement of public investment capital?
- Public investment refers to the State’s investment in programs, projects and others classified as subjects of public investment as provided for in the Law on Public Investment 2019 of Vietnam.
- Public investment capital regulated in the Law on Public Investment 2019 shall comprise: state budget funds; legitimate revenues of state agencies and public service units that are retained for investment purposes as provided in law.
Thus, disbursement of public investment capital can be understood as the State's lending from state capital to agencies and organizations for some programs and projects.
2. Groups of industries and sectors to be disbursed public investment capital
According to Decision No. 26/2020/QĐ-TTg of the Prime Minister of Vietnam, there are 13 groups of industries and sectors to be disbursed public investment capital, including:
- National defense;
- Public security, social order and safety;
- Education, training and vocational education;
- Science and technology;
- Healthcare, population and family;
- Culture and information;
- Radio, television and news broadcasting;
- Sports and physical activities;
- Environmental protection;
- Economic activities: Tasks, programs and projects serving different purposes in the following sectors: agriculture, forestry, salt production, irrigation and fisheries; industry; transportation; etc.
- Activities, operations and services of state regulatory authorities, public service units, political organizations and socio-political organizations;
- Society;
- Other tasks, programs and projects prescribed by laws.
3. Why is the disbursement of public investment capital considered the optimal policy for socio-economic development?
Recently, Vietnam’s Government has issued Official Dispatch No. 1259/TTg-KTTH on removing difficulties, promoting production, business, consumption and speeding up disbursement of public investment capital, which emphasizes to accelerate the disbursement of public investment capital to contribute to the early recovery and socio-economic development in the new normal state. Because:
Firstly, disbursing public investment capital as a driving force for the development of the economy.
Secondly, disbursing public investment capital is one of the most important solutions to "stimulate" the economy after the epidemic. Specifically, accelerating the progress of public investment will increase the demand of the economy and this will stimulate businesses to return immediately to production to create markets.
Thirdly, important projects can be transformed into public investment forms to speed up progress.
4. Solutions to disburse public investment capital in the current period
Official Dispatch No. 1259/TTg-KTTH issued on September 17, 2020 by the Prime Minister of Vietnam set out solutions to disburse public investment capital to promote economic development, including:
- Sticking to practical requirements to focus on solving difficulties and promoting production and business;
- Strongly promote consumption, especially focusing on the domestic market of nearly 100 million people and take appropriate and effective measures to maintain and develop export markets;
- Drastically remove difficulties and obstacles, strongly promote the disbursement of public investment capital, especially ODA capital.
Thus, in the current difficult period of both social and economic situation due to the impact of Covid-19, the State has constantly proposed important solutions to remove difficulties and promote economic development. In particular, the solution to disburse public investment capital is being implemented most of all.
Thuy Tram
