The event of the Law on Public Investment being passed by the National Assembly at the 7th Session recently, after many years of delay, has brought hope to "reinforce" discipline in the management and supervision of public investment, enhance efficiency, and avoid losses and wastage.
Article table of contents
Main Content and Positive Impacts of the Law
Public Investment Law is structured into 6 chapters with 108 articles. The provisions in the Public Investment Law are new contents, not previously regulated in other legal documents, with many specific impacts as follows:
First, the Public Investment Law contributes to the completion and creation of a unified and synchronized legal basis system with other legal documents in managing public investment capital sources.
Management and use of public investment capital involve many different laws, such as: State Budget Law (NSNN), Construction Law, Public Debt Management Law, Law on Management and Use of State Assets, Procurement Law, Anti-Corruption Law; Law on Thrift Practice and Waste Combat...
However, these legal documents do not have detailed regulations on managing and using public investment capital. To be specific:
- Regarding the State Budget Law: The scope of adjustment of this Law only stipulates the management of revenues and expenditures included in the State Budget balance and implemented within one year. Meanwhile, the scope of adjustment of the Public Investment Law regulates the entire process of managing and using public investment capital from investment policy, investment preparation, approval, implementation, monitoring, and evaluation of plans, programs, projects...
Regarding the scope of public investment capital sources, besides the State Budget sources stipulated in the State Budget Law, the Public Investment Law also regulates other sources: national bonds, government bonds, local government bonds, official development assistance (ODA), and preferential loans from donors, state development investment credit, and investment funds from retained revenue for investment but not yet included in the State Budget balance, local budget loans for constructing local infrastructure works.
Regarding the preparation of investment plans from the State Budget, the State Budget Law only provides general procedures for preparing, appraising, and approving State Budget estimates, including several minor articles on preparing development investment estimates from the State Budget; there are no regulations on deciding investment policies, selecting categories, and allocating investment plans to ensure efficient spending of this capital.
In contrast, the Public Investment Law comprehensively and strictly regulates the identification and selection of program and project categories for inclusion in the plan; principles and criteria for allocating and arranging plan capital; the process of implementation; monitoring, evaluation, and supervision of public investment plan implementation.
- Regarding the Construction Law: The Construction Law regulates construction activities; focusing on technical aspects such as managing economic-technical standards, design of construction planning; preparing, appraising, and approving construction investment projects; conducting construction surveys and designs; construction permits; construction contracts... The Construction Law only applies to construction investment projects.
The scope of adjustment of the Public Investment Law applies to all public investment projects; managing investment activities and investment capital use from investment policy to selecting investment project categories, preparing medium-term and annual investment plans. Moreover, the Public Investment Law's regulations on preparation, appraisal, and approval also apply to public investment programs and non-construction investment projects. Currently, there is no legal document stipulating this scope.
- Regarding the Public Debt Management Law: To ensure public debt and national debt safety, the Public Investment Law stipulates principles and bases for preparing public investment plans prioritizing public debt safety and compliance with the national debt strategy. Investment in programs, projects, and medium-term and annual public investment plans must adhere to the Government of Vietnam's borrow and repay plans. The Public Investment Law's clear regulations, from determining investment policy, approving investment decisions, to preparing investment plans, will address issues related to debt repayment responsibilities and public debt safety.
- Regarding the Anti-Corruption Law and the Law on Thrift Practice and Waste Combat: Both laws only have a few articles stipulating principles for preparing, appraising, and approving planning, and investment project categories; they do not specify detailed regulations. The contents among these laws are entirely unified. Therefore, issuing specific regulations in the Public Investment Law will support addressing violations mentioned in the Anti-Corruption Law and the Law on Thrift Practice and Waste Combat.
Thus, the regulations in the Public Investment Law have created unity in adjustment scope with other laws, without any overlaps.
Second, the scope of adjustment of the Law covers the management and use of public investment capital sources. The adjustment scope and applicable subjects specified in Chapter I cover public investment capital sources from the State Budget, national bonds, government bonds, local government bonds, ODA, and preferential loans from foreign donors, state development investment credit, investment capital from retained revenue for investment not yet included in the State Budget balance, local budget loans for investment within and outside the territory of Vietnam.
Third, the most important innovation of the Public Investment Law is the institutionalization of the investment policy decision-making process. This is the starting point determining the correctness and effectiveness of programs and projects; aiming to prevent arbitrary, subjective, and simplistic decision-making on investment policies, enhancing the responsibility of decision-makers on investment policies.
In practice, public investment management has shown waste and loss due to various reasons, such as lax management, scattered investment, corruption, construction skimming..., but the biggest waste still stems from incorrect and ineffective investment policies.
This situation has persisted for many years, but there have been no remedial measures, and in some aspects, it has worsened. The Public Investment Law dedicates an entire Section 1 in Chapter II to regulate the contents, processes, and approval of investment policies and investment decisions, including: authority to decide investment policies; conditions and procedures for deciding investment policies for national important programs and projects, and other programs and projects.
These are new regulations not previously stipulated in existing legal norms; specifically, the contents on authority and strict procedures for deciding investment policies for public investment programs and projects.
Fourth, strengthening and innovating the appraisal of capital sources and capital balance, considering it one of the most important contents of public investment programs, and projects appraisal.
Currently, many ministries and central authorities and localities do not attach importance to appraising capital sources and capital balance or only do it superficially and perfunctorily; deciding on programs and projects with multiple larger scales than the capital balance capability of the decision-making level, as well as the supplementary capability of the superior budget.
The regulation on appraising capital sources and capital balance (institutionalizing the policies and solutions in Directive No. 1792/CT-TTg) will enhance the quality and efficiency of public investment programs and projects.
Currently, many ministries and central authorities and localities do not attach importance to appraising capital sources and capital balance or only do it superficially and perfunctorily; deciding on programs and projects with multiple larger scales than the capital balance capability of the decision-making level, as well as the supplementary capability of the superior budget.
Fifth, significantly innovating the preparation of investment plans; shifting from short-term, annual planning to medium-term 5-year plans, consistent with the 5-year socio-economic development plans. This is also an important innovation in public investment management. The Law has dedicated an entire chapter to stipulate the preparation, appraisal, approval, and allocation of public investment plans, covering the entire process from preparation to appraisal, approval, and allocation of medium-term and annual investment plans according to principles, conditions for selecting program and project categories by specific capital sources.
In preparing public investment plans, many new contents have been stipulated, with scientific and practical bases, such as ensuring that medium-term investment plans will secure sufficient capital for approved programs and projects to be completed according to the approved decisions, overcoming the current situation of unbalanced capital sources and passive, segmented annual investment.
The bases and principles for preparing medium-term and annual investment plans for all capital sources are strictly and specifically regulated, ensuring that the plans align with the goals and orientations in socio-economic development strategies, master plans, and plans.
The principles for allocating medium-term and annual public investment plan capital for programs and projects, as well as principles for selecting project categories, and projected capital allocation for each project, have been ensured to overcome the situation of scattered and fragmented investment as before the Law.
The conditions for program and project investment allocation of medium-term and annual public investment plan capital ensure sufficient time for program and project leaders to complete investment procedures. At the same time, requiring program and project leaders to only allocate annual plan capital when they have completed investment procedures within the stipulated time, overcoming the situation of simultaneous construction and completion of investment procedures as previously.
Formulating and implementing medium-term investment plans will ensure both the large economic balances nationwide and enable ministries, central authorities, and local authorities to know how much capital they have in the 5-year plan to make correct and effective investment policy decisions; especially creating publicity and transparency in state resource allocation, avoiding a "grantor-grantee" mechanism.
Sixth, strengthening monitoring, evaluation, inspection, and audit of public investment plans, programs, and projects. A chapter in the Public Investment Law stipulates the contents on implementing plans; monitoring, evaluation, inspection, and audit of public investment plans, programs, and projects at all levels and sectors. For the first time, the monitoring and evaluation of investment plan implementation and public investment programs and projects, particularly community monitoring regulations, are stipulated in the Law, consistent with international practices.
With these regulations, it is hoped that public investment plans, programs, and projects will be implemented in accordance with legal provisions. At the same time, in each implementation stage of the plans, programs, and projects, there will be monitoring, evaluation, inspection, and audit, ensuring the management and use of public investment capital for the right purposes, with thrift and efficiency.
Seventh, continue to innovate and complete the decentralization of public investment management regulations by defining the authority's responsibilities closely. Based on maintaining the principles of public investment management decentralization and authority responsibilities of each level and sector as current, the Law has regulated the powers and responsibilities of each level throughout the entire investment process of programs and projects from preparation, approval, to implementation, monitoring, and evaluation of public investment plans.
With the above innovations, the implementation of the Public Investment Law will significantly contribute to restructuring public investment towards higher efficiency, creating conditions to accelerate building a synchronized infrastructure system, ensuring rapid and sustainable economic development.
It can be affirmed that clear and specific legal regulations in public investment activities in the Public Investment Law will create a significant progress in management; ensuring transparency and publicity in the management and use of state resources; contributing to and legally facilitating the promotion of anti-corruption, waste combat, and thrift practice in basic construction investment.
The issuance of Public Investment Law creates an important legal basis system in public investment management. However, this is only the beginning. To truly promote the effectiveness and efficiency of the Public Investment Law, it requires: (i) Efforts from all sectors, levels, and enterprises; (ii) Innovation in organizational structure, training, improving the capacity of officials, and reforming the working style of related organizations and agencies; (iii) Active participation from the Vietnam Fatherland Front at all levels, unions, associations, and communities. Achieving this will truly enhance the efficiency of public investment, overcome current limitations and shortcomings, create conditions for technical infrastructure development, ensuring rapid and sustainable economic development.
Source: Kinhtevadubao.vn
