Public investment restructuring needs consistent solutions (31/01)
31/01/2013 - 14 Lượt xem
'Chronic' disease control
Talking to the media
in early 2013, one year after public investment restructuring began,
Deputy Minister of Planning and Investment Cao Viet Sinh said that public investment restructuring means making public investment more effective but not public investment erasure. He said that scattered investment was controlled. 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).
The number
of new construction projects was decreased in accordance with Prime
Ministerial Instruction 1792/CT-TTg (providing guidelines for strengthening management of investment funded by the state
budget and or mobilized through Government bonds). Arrangement of
capital for new construction projects in 2012 must be considered and
approved by the Ministry of Planning and Investment and then the Prime Minister. These projects were 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
according to Prime Ministerial Instruction 1792/CT-TTg they can foresee how much capital mobilized from bonds and state capital they will have in the forthcoming three years. This means that the 'Asking and giving' practice related to public investment no longer exists.
Public investment restructuring remains vital in 2013
Although public investment restructuring achieved initial results, according to experts, there is much work to do with this restructuring process. According to the Prime Minister's New Year message, investment restructuring (with the core being public investment restructuring), financial market restructuring (with commercial banks restructuring being the core), and state business restructuring (with state economic group and corporation restructuring being the core) will be continued along with economic restructuring and growth model transformation.
This means that public investment restructuring remains a burning issue in 2013 and the following years. Public investment restructuring is the right way because according to experts, investment is the origin of growth. Deputy Minister of Planning and Investment Cao Viet Sinh said that in
2013 unfocused investment will be decreased through shifting 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. This year, the public-private partnership (PPP) legal framework will be further improved to attract private sector's investment in public investment. State economic groups will be restructured so their
loans, spending and investment can be better controlled. Relevant
ministries and authorities will supervise businesses' investment
activities to avoid a situation in which businesses borrow as much capital as they want for investment without control.
Central Institute for Economic Management (CIEM) former Director, Dr. Le Dang Doanh said that it is necessary to have a concrete plan for public investment restructuring and that this plan needs to be pertained to law, policy and management reform. It is also important to propose that the relevant authority issue laws related to public investment, such as a public investment law, a law on state procurements, and documents amending and supplementing budget, construction and other laws.
CIEM Director, Associate Professor, Dr. Le Xuan Ba said that public
investment restructuring is part of economic restructuring so many
solutions need to be realized to make public investment restructuring
successful. One of the solutions is to decrease the rate
of total investment per gross domestic product (GDP) from more than 40
percent in 2011 to less than 35 percent and make public investment just
less than one third of total investment. The State
should gradually withdraw its capital and management from
profit-targeting business sectors to focus on implementing and
accomplishing operations needed for the country's development that other sectors do not want or are unable to do.
It is necessary to review all approved but unimplemented investment portfolios including those ratified by high-ranking authorities to thoroughly abolish portfolios that are no longer suitable to new criteria. This means that public investment restructuring needs to include restructuring of projects that are no longer suitable to actual development demands and or cause a bad consequence as well as preventing creation of investment portfolios of unknown purposes.
Public investment needs to be concentrated on public projects and must be used for constructing a public project for the new period. It is important to revise and supplement Government Resolution 08/2004/NQ-CP on state management of public investment control authorization. Investment management authorization was out of control of state relevant authorities, causing resource wastes and deforming the economic structure. It is very important to combine the duty of making an investment decision with the duty of arranging capital for that investment.
Former Deputy Prime Minister Vu Khoan said that public investment problems were attributed to substandard thoughts so successful public investment restructuring needs dramatic changes in thoughts./.
Source: VEN.
Source: VEN.
