Posted on 24 Mar 2008
The figure represents more than 60 per cent of the proposed
spending for socio-economic development in the five years from 2006.
Of this, VND526.6 trillion ($32 billion) would come from the
State Budget and VND204 trillion ($12.75 billion) from credit.
State-owned enterprises would contribute about VND414.6
trillion ($25.9 billion) and capital raised from international sources,
including Official Development Assistance, promissory notes and loans, about
VND220 trillion ($13.75 billion).
The remainder, VND206 trillion ($12.88 billion), would be
mobilised from the domestic sale of Viet Nam Government bonds.
The ministry suggests that VND964.4 trillion ($60.3 billion)
of the money be dedicated to the economy, especially, agriculture – forestry,
aqua culture – industry and transport.
It says high-tech industries and the production of materials
should be the focus of the investment with industrial parks and their
requirement of mass labour given priority.
The ministry suggests the spending of VND310.4 trillion
($19.4 billion) for urban development, science and technology and education and
training.
The remainder should go to defence, security and planning.
The ministry says the proposed investment would total twice
as much as the five years to 2005, about VND680 trillion ($42.5 billion), and
could be expected to considerably increase the capacity of the national
economy.
The power sector was expected to increase its yearly output
by 18,400 MW; coal production would rise by more than 11.5 million tonnes and
crude oil by more than 3 million tonnes.
The investment would allow the building or upgrading of
5,800km of roads and 950km of railway while ports could handle an extra 65
million tonnes of cargo.
Airports could receive 14.8 million more passengers than
they do now.
The ministry says the investment for the five years to 2005
had significantly improved national infrastructure, especially in rural and
remote
But it concedes the amount of public investment had not been
enough to meet all the demands of socio-economic development.
Nor had its disbursement and the progress of projects been
as effective as required.
Perfecting policy
The ministry says that the policies for mobilising funds for
public investment from all of
The design of projects financed from public investment must
also be improved.
Supervision of the regulations for the management and
disbursement of public investment must be the focus, it says.
Former president of the ministry’s Economic Management
Institute Le Dang Doanh suggests that specific criteria to measure the
effectiveness of public investment would be required.
Without criteria, and sanctions for their violation, no one would
have to admit the ineffectiveness of their projects, he told Tuoi Tre (Youth)
newspaper.
