Principles for mid-term and annual public investment planning in Vietnam

Principles for mid-term and annual public investment planning in Vietnam (Image from Internet)

1. Principles for mid-term and annual public investment planning in Vietnam

The Principles for mid-term and annual public investment planning in Vietnam according to Article 48 of the Law on Public Investment 2019 are as follows:

- Align with the development objectives in the national, sectoral, field, and local socio-economic development strategy, 05-year and annual socio-economic development plans, approved planning, 05-year financial plans, and 05-year public debt borrowing and repayment plans.

- Align with the capability to balance sources of public investment capital and attract investment capital from other economic sectors; ensure macroeconomic balance, prioritize public debt safety.

- The allocation of public investment capital must comply with principles, criteria, and norms for the allocation of public investment capital in each stage approved by competent authorities.

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

- Ensure openness, transparency, and fairness.

- Ensure centralized and unified management of objectives, mechanisms, and policies; implement decentralization in investment management to create autonomy for ministries, central agencies, 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.

2. Basis for mid-term and annual public investment planning in Vietnam

The basis for mid-term and annual public investment planning in Vietnam according to Article 47 of the Law on Public Investment 2019 are as follows:

- Basis for medium-term public investment planning includes:

+ Situation and results of the implementation of the 05-year socio-economic development plan and the medium-term public investment plan of the previous period;

+ Socio-economic development strategy; 05-year socio-economic development plans of the nation, sector, field, locality; 05-year financial plan; 05-year public debt borrowing and repayment plan; investment priority objectives in the 05-year plan of the nation, sectors, fields, and localities;

+ Relevant planning as regulated by the planning law;

+ Needs and forecasts of the ability to mobilize investment sources to build socio-economic infrastructure, the balancing capability of state budget capital;

+ Forecasts of the impacts of global and domestic situations on development and the ability to mobilize investment sources;

+ Mechanisms and policies to attract investment capital from economic sectors to build socio-economic infrastructure.

- Basis for annual public investment planning includes:

+ Situation and results of the implementation of the national, sectoral, field, and local socio-economic development plan; results of the previous year's public investment plan implementation;

+ Annual socio-economic development plan;

+ Medium-term public investment plan;

+ Needs and capability to balance resources to invest in building socio-economic infrastructure in the plan year.

3. Contents of the Annual Public Investment Planning Report Submitted for Competent Authority Approval in Vietnam

The contents of the annual public investment plan report submitted for competent authority approval, according to Article 50 of the Law on Public Investment 2019 are as follows:

- Situation of the previous year's public investment plan implementation.

- Public investment orientation in the plan year.

- Ability to mobilize and balance the sources of capital to be implemented in the plan year.

- Selection of project list and specific capital allocation for each project in line with the project list in the medium-term public investment plan and the ability to balance annual plan capital.

- Management solutions, organizational implementation, and expected outcomes.

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