Tin mới
Unfocused public investment under control (15/01)
15/01/2013 - 25 Lượt xem
Could you tell us about public investment restructuring in 2012?
Public
investment restructuring obtained some good initial results last year.
Scattered investment was controlled in accordance with Prime Ministerial Instruction 1792/CT-TTg. The situation in which projects of Group D last for seven to eight years and projects of Group C last for four to five years no longer exists (according to the regulation,
projects of Group D have a duration of no more than five years and
projects of Group C have a duration of no more than three years).
Projects that have recently started construction are required to finish their work on time.
Less effective projects including those consuming a large amount of state capital were halted. They would be continued when necessary. Some projects needing investment capital of VND2-3 trillion each began construction despite the lack of capital and they were halted for consideration.
Previously, without a control, localities decided investments and then asked the Government for capital for these projects. This situation no longer exists.
Localities have now become more cautious in making an investment decision as they can foresee how much capital mobilized from bonds and state capital they will have in the forthcoming three years.
Public investment restructuring will still be an important part of economic restructuring in 2013. What will the Ministry of Planning and Investment do to make public investment restructuring more effective?
Public investment restructuring is currently related to state-owned enterprises, the state budget, and credit. Public investment restructuring related to state budget was done in compliance with Prime Ministerial Instruction 1792 and obtained some initially positive results. However, to reach greater efficiency it is necessary
to shift from making and implementing short-term or annual plans to
preparing and realizing medium and long-term plans. In this regard, the Government will be telling the Ministry of Planning and Investment to inform localities of how much money it plans to spend on basic construction to 2015.
Diversifying
investment sources and promoting PPP (public-private partnerships) are
important to improve public investment restructuring.
State economic groups are under restructuring so their loans, spending and investment can be better controlled. On November 15, the Prime Minister issued
Decree 99/2012/ND-CP referring to powers and duties of state capital
owner representatives in state businesses as well as state capital in
businesses. According to this decree, ministries will supervise business investment activities to avoid a situation in which businesses borrow as much capital as they want for investment without control.
You
talked about PPP's role in public investment restructuring, but private
sector representatives said that inadequate policies deter the sector from contributing to public investment. What will the Government do to solve this problem?
Both the domestic and foreign private sectors are interested in infrastructure development but the domestic private sector's capability remains humble. The foreign private sector is highly interested in public investment, but Vietnam's inadequate legal framework makes it hard for them to invest in public sector services and infrastructure here. Vietnam issued Prime Ministerial Decision 71/2010/QD-TTg on issuing regulations on experimenting with PPP-based public investment and the country still lacks an adequate legal framework for public investment and on how to attract the private sector's investment in infrastructure development. In the coming time, the Government will improve PPP guidance documents and form a major reciprocal fund to match private sector investment to pave the way for the sector to join public investment projects./.
Source: VEN
