The World Bank (WB), Ministry of Planning and Investment (MPI), and Asian Development Institute on September 8 and 9 have jointly held an international seminar on strengthening public investment management, and enhancing the effectiveness of public investment. Participants also shared their experiences in mapping out strategies that could help countries improve public investment management.
According to MPI, around 286 trillion dong was used for public investment during the 2001-2005 period, accounting for over 23 percent of the total social investment. For 2006-2010 period, the figure is estimated at over 739 trillion dong, accounting for 24 percent of the total social investment. The proportion figure is expected to remain the same in the period of 2010-2015.
The state capital for public projects and programmes holds a large proportion. Hence, it is very important and necessary to manage and use this source effectively. Therefore, Vietnamese government should have suitable measures and policies to use the national capital source more efficiently.
Martine Rama, Acting director of the WB’s East Asia Development Department said Vietnam is one of the countries having high public investment proportion, nearly 40 percent of the total GDP.
However, Martin also pointed out Vietnam’s shortcomings in public investment management, such as insufficient attention to regional development in the overall investment plan; no strategic environment assessment to make key selections (e.g. mining sector); decentralisation leading to overlapping and ineffectiveness; disconnected relation between state capital and current budgetary expenditure; and overlapping among related laws such as State Budget Law, Construction Law and Bidding Law, etc.
Sharing Korean’s reform experiences, Jay-Hyung Kim, Managing director of Public and Private Infrastructure Investment Management Centre, Korea Development Institute completely agreed with Vietnamese government’s direction to follow the general trend. He added that the project appraisal would be better if it is decentralised to localities.
Director of MPI’s Foreign Economic Relation Department Ho Quang Minh said, in order to promote the effectiveness of public investment in the future, Vietnamese government would focus on perfecting the guides on public investment management, especially investment from the state budget. Moreover, the government would also focus on improving the policies and mechanisms for the project consultation, supervision and management to be more transparent; specifically defining responsibilities of each area and each level; strengthening the inspection and supervision activities, correcting the ineffective projects and the investments not included in the overall planning, and overcoming losses and corruptions.
In addition, Vietnam would comprehensively carry out the measures such as assigning investment decision makers and investors to bear more responsibility, and accelerating the implementation of project constructions, etc.