| |
| Vietnam to invest 791tr dong in development projects this year, up 12.3% |
| 11-MAR-2010 Intellasia | Chinh Phu.vn |
|
| 11 Mar, 2010 - 7:00:00 AM |
|
|
Major infrastructure construction projects will continue to be an important driving force for the country's socio-economic development this year, but investment from the State budget into the sector will be narrowed.
Thus, the Ministry of Construction's main task this year will be to attract capital from other sources and use it effectively.
Prime Minister Nguyen Tan Dung highlighted this issue during the Government's online meeting on construction investment yesterday. Ministries, sectors, economic groups and 63 provinces and cities' authorities took part in the meeting.
Dung affirmed that 2010 was the last year to implement the Socio-economic Development Plan for 2006-10 and the Socio-Economic Development Strategy from 2001 to 10. Thus, efficient investment of capital usage would still be of significance in order to successfully implement the plan and strategy.
Capital from the State budget will only make up 15.9% of the total funds that are poured into construction projects. Government bonds will account for 7.1% and State's loans will be used for 7% of the projects and plans. Therefore, the remaining capital needed will come from other sources.
This year, capital lured for development from all sectors is expected to reach 791 trillion dong ($41.6 billion), which is an increase of 12.3% from last year and accounts for 41% of the country's Gross Domestic Products.
The Prime Minister asked ministries, sectors and localities to reassess projects this month, allocate capital to qualified and prioritized projects and speed up the progress of the projects.
Authorities and investors had to review investment procedures and better implement resettlement plans to tackle the difficulties that accompany land clearance.
Ministries, sectors and localities were requested to work out suitable agreements to mobilize capital from domestic and foreign sources to reduce their dependence on the State budget.
Official Development Assistance capital that will be granted to Vietnam in 2009 and 2010 was so large that investors should prepare well to use the capital efficiently, especially with climate change response and infrastructure projects.
It was necessary to encourage projects conducted under the Build-Operate-Transfer, Build-Transfer and Private-Public Partnership models, Dung said.
The Ministry of Finance had to work out plans for issuing bonds for the 2011-15 period and ensure financial security. Commercial banks were asked to continue creating favourable conditions for enterprises to access capital and improve production efficiency.
Last year, total capital set aside for capital construction projects was more than 228 trillion dong ($12 billion), which represented a 98% rise from the previous year. Of the total, 91% was disbursed, which was a record for the country.
Private capital last year also surged by 54.4% to attain 28 trillion dong ($1.4 billion), foreign direct investment was 119.2 trillion dong ($6.3 billion) and ODA capital was 6.1 billion dong ($321,000).
|
|
|
|
