Bases for formulation of mid-term and annual public investment plans in Vietnam

Bases for formulation of mid-term and annual public investment plans in Vietnam

Pursuant to Article 47 of the Law on Public Investment 2019, it stipulates the basis for making medium-term and annual public investment plans as follows:

(1) Midterm public investment plan shall be formulated on the following bases:

- Current conditions and outcomes of implementation of the 5-year socio-economic development plan and the midterm public investment plan developed in the previous stage;

- Socio-economic development strategy; national, sector-specific, industry-specific and local 5-year socio-economic development plans; 5-year financial plan; 5-year borrowing and public debt repayment plans; preferred investment objectives included in 5-year national, sector-specific, industry-specific and local public investment plans;

- Related planning scheme provided for in law on planning;

- Demands for and forecast of capabilities of mobilization of funding sources invested in construction of socio-economic infrastructure and of balancing the state budget’s capital;

- Forecast of impacts of global and domestic situations on development and capabilities of mobilization of investment funds;

- Regulatory and policy framework on calling for investment funds from different economic sectors for the purposes of construction of socio-economic infrastructure.

(2) Annual public investment plan shall be formulated on the following bases:

- Review of progress in and outcomes of implementation of national, sector-specific, industry-specific and local socio-economic development plans; outcomes of implementation of the previous-year public investment plan;

- Annual socio-economic development plan;

- Midterm public investment plan;

- Demands for and capabilities of balancing resources for the purposes of investing in construction of socio-economic infrastructure in the plan year.

Bases for formulation of mid-term and annual public investment plans in Vietnam (Internet image)

Principles of formulation of mid-term and annual public investment plans in Vietnam

Pursuant to Article 48 of the Law on Public Investment 2019, principles of formulation of mid-term and annual public investment plans are as follows:

- Agree with developmental objectives included in the socio-economic development strategy, 5-year and annual national, sector-specific, industry-specific or local socio-economic development and other approved plans, 5-year financial plan, and 5-year borrowing and public debt repayment plan.

- Correspond to capabilities of balancing public investment funds and calling for different investment capital from other economic sectors; ensure macroeconomic balance and prioritization of public debt safety.

- Distribution of public investment capital must adhere to principles, criteria and norms of distribution of public investment capital in specific stages that have already been approved by competent authorities.

- Prefer to distribute funds to sectors, industries or territorial areas by taking account of developmental objectives and guidelines existing over periods of time.

- Ensure public disclosure, transparency and fairness.

- Make sure that managerial activities must be performed in a concentrated and consistent manner in terms of objectives, regulations and policies; ensure that investment management powers are decentralized and autonomy is granted to Ministries, central and local regulatory authorities in accordance with laws in order to enhance investment efficiency.

- Annual public investment plan must be consistent with the approved midterm public investment plan.

Mai Thanh Loi

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