Prime Minister Nguyen Xuan Phuc (Photo: VGP/Quang Hieu)

He said that over the years, public investment capital has been too slowly disbursed, negatively affecting Vietnam’s socio-economic development. This capital accounts for 10.7% of Vietnam’s GDP and 32% of the total investment capital this year, according to Prime Minister Phuc.

“The slow disbursement has four negative effects. First, it hinders economic growth, because capital is an essential factor for growth. Secondly, since public investment capital helps pay for major infrastructure projects, if it is disbursed slowly, it undermines the trust of investors and donors, as well as national prestige. Third, slow disbursement results in huge waste. Finally, it increases investment costs,” said Mr. Phuc.

Mr. Phuc asked ministries, agencies, and localities to clarify the reasons and find ways to speed up disbursement between now and the end of the year.

He said the government will divest capital from localities and ministries that can’t conduct timely disbursement to more effective agencies.