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Drastic Changes needed on investment capital

the conditions for adjustment may be missing a certain step that is not important but is required according to regulations.

Vietnam News |

Disbursement of investment capital in the first seven months of the year was still low. In particular, there are hindrances that have been raised for many years but have not been completely resolved. Is there a problem with our mechanism or policy? There are many reasons for the delay in disbursement that have been pointed out for many years, such as: site clearance, investment preparation. We must frankly admit that solutions to overcome these shortcomings have not been implemented effectively. For example, site clearance progress is slow because we are currently doing two things at the same time: project construction and site clearance. Obviously, we have seen this problem before, but there is no solution to fix it. In addition, the current policies in land clearance compensation have many shortcomings such as determining the land price, determining the price of the recovered property, etc., which do not satisfy the needs of the people, so the people do not agree with the compensation rate.

The procedures for approving investment projects to qualify for capital allocation or approving the adjustment process are also time-consuming. In particular, the assignment of rights and assignment of responsibilities in each relevant agency or unit is sometimes very general. So, if one unit finds some procedures difficult, they can transfer such responsibility to another unit, or to the upper management unit. To speed up the disbursement progress, Government has established interdisciplinary working groups with many participating agencies, so that when the projects have problems, these agencies will sit together and come up with solutions immediately. This is a measure for agencies, departments and sectors to work well together. But in reality, the work of coordination and resolution is still very slow, and not really effective. This proves that the mechanisms in the management of the approval procedures for investment projects are still binding to create safety for authorised individuals and organisations instead of pointing out clear responsibility as well as the right of individuals and organisations.

There is also another reason for slow implementation, which is the lack of capacity of contractors. Many solutions have been implemented such as assigning responsibility to the head of the unit to be responsible for the disbursement progress. If the management unit of one project does not manage to make disbursement at an expected rate, in the following year, the capital for the project will be either cut or transferred to another project. The Government has also set up inspection teams to detect which units do not strictly comply to hand down proper settlements. However, the disbursement is still slow and so far, no individuals or units have been handled, and no funding for any projects has been cut or transferred. There are two reasons, the first is that the authorities themselves are not tough enough. The second is that the slow disbursement is difficult to attribute to a specific individual or a specific unit. For example, a project needs adjustment, but the adjustment involves many ministries and branches. Then, the conditions for adjustment may be missing a certain step that is not important but is required according to regulations.