Vietnam's Public Investment Disbursement Stalls at 12.6% in 2026

Post by : Shakul

Vietnam is experiencing a sluggish pace in public investment disbursement for 2026, sparking concerns regarding economic growth and the execution of projects. The Ministry of Finance reports that as of April 15, only VND 127,390.6 billion has been disbursed, equating to just 12.6% of the target set by the Prime Minister.

The total public investment budget for 2026 amounts to VND 1,026,579.6 billion, encompassing both central and local government allocations. Despite a commendable allocation rate exceeding 95%, the actual disbursement continues to fall short of expectations.

According to the Ministry of Finance, allocations for various projects have totaled VND 976,538.8 billion; however, VND 50,040.8 billion remains unallocated due to ongoing administrative and investment procedure challenges.

The report indicates that few ministries, central agencies, and local authorities are achieving the national average disbursement rate. Only 7 central entities and 16 local governments have met or surpassed this average, with crucial sectors including defense and industry, as well as major cities like Hanoi and Hai Phong leading the way.

Conversely, 28 ministries and central agencies, along with 18 localities, report disbursement rates below the national benchmark. Some entities exhibit particularly low figures, with rates falling beneath 1% or showing no disbursement whatsoever.

Significantly, several prominent institutions, including the Ministry of Foreign Affairs, Ministry of Education and Training, and the State Bank of Vietnam, are noted for minimal or zero disbursement. This raises alarms over potential delays in essential public projects and the presence of administrative hurdles.

This situation underscores the ongoing difficulties in efficiently executing public investment, despite adequate budget provisions. Authorities are anticipated to advocate for expedited processes in the upcoming months to achieve annual objectives and bolster economic growth.

#Economy #Vietnam #Investment #Manitoba government