'Unleashing' public investment capital

The meeting chaired by Deputy Prime Minister Nguyen Van Thang on the KPI scoring method for ministries, sectors, and localities in the implementation of public investment disbursement tasks is attracting public attention. The pressure to disburse public investment funds this year is immense, so this move is expected to create a new shift in management with clear quantitative criteria.

The Bản Áng resettlement area (Thanh Thịnh commune, Thái Nguyên province) is currently undergoing infrastructure development to serve the Bắc Kạn - Chợ Mới expressway project. (Photo: Provided)

Public investment has long played the role of "seed capital," creating momentum for economic growth. When this capital flow is disrupted, numerous infrastructure projects fall behind schedule, leading to a chain reaction affecting many production and business sectors. For many years, the pattern of slow disbursement at the beginning of the year followed by a rush at the end of the year has repeated itself.

The paradox of "having money but being unable to spend it" stems from various causes such as complex administrative procedures, difficulties in land clearance, and a reluctance to take responsibility among some officials. Applying key performance indicators (KPIs) can create positive pressure, shifting from subjective evaluations to concrete results, thereby enhancing the accountability of leaders.

However, implementing KPIs in the public sector is not a simple task. If poorly designed, KPIs can easily become mere formalities, creating pressure to chase after achievements. A locality might achieve a very high disbursement rate by prioritizing small, less problematic projects, while large-scale, strategically important infrastructure projects are avoided.

You may also like

Ho Chi Minh City's real estate market surpasses 1.5 trillion VND in outstanding credit.Outstanding credit for real estate activities in Ho Chi Minh City exceeded 1.5 trillion VND by the end of May, reflecting the rapid flow of capital and the strong transformation of the market from a state of recovery to stable growth after a prolonged period of stagnation from 2022 to 2024.

Hanoi holds press conference to announce the Master Plan for the Capital City of Hanoi with a 100-year vision.On the afternoon of June 25th, the Hanoi People's Committee held a press conference to provide information about the conference announcing the master plan for Hanoi Capital City with a 100-year vision and promoting investment in 2026.

Relaxing the short-term capital ceiling for long-term loans: Providing additional capital impetus for the economy.The State Bank of Vietnam's decision to raise the maximum ratio of short-term funds used for medium and long-term lending from 30% to 40% is expected to create more room for capital supply to the economy. However, the opportunity to expand credit also places higher demands on liquidity management, control of maturity mismatches, and the selection of sectors capable of generating new production capacity.

Conversely, some ministries and agencies have made great efforts but still face objective obstacles stemming from mechanisms, policies, or issues beyond their authority to handle.

Therefore, the KPI system being developed needs to ensure multidimensionality and accurately reflect the quality of disbursement. The core value of public investment KPIs lies in the actual effectiveness of budget funds.

The scoring system cannot be based solely on the disbursement rate, but must be linked to implementation progress, construction quality, and the socio-economic impact of the project. The evaluation system also needs to clearly define subjective and objective responsibilities, accurately identify the causes of each bottleneck, and develop appropriate solutions or sanctions.

More broadly, applying KPIs in the disbursement of public investment funds is essential in the journey towards building a modern governance system that prioritizes efficiency and accountability. The message is clear: We cannot continue to be satisfied with reports that focus heavily on lessons learned but lack substantive change. Instead, we must have concrete indicators, measurable results, and clearly defined accountability.

Those who perform their duties well should receive due recognition; those who are negligent and hinder progress must be held accountable accordingly.

United States - Vietnam: Don't miss

Vietnam encourages US businesses to expand investment in high technology.On the morning of June 26th, at the Government Headquarters, Deputy Prime Minister Ho Quoc Dung received Mr. Jeff Place, Supply Chain Director of Coherent Group (USA). During the meeting, the Deputy Prime Minister affirmed that Vietnam encourages US businesses to expand investment, especially in high-tech, innovation, and semiconductor industries.

Encourage U.S. businesses to expand investment in high-tech sectors.Deputy Prime Minister Ho Quoc Dung said that Vietnam welcomes US businesses to continue expanding their operations in Vietnam, especially in high-tech industries and sectors with high added value.

Vietnam and the United States strengthen cooperation in addressing the consequences of war.VTV.vn - On June 22, General Secretary and President To Lam received Acting Secretary of the US Navy Hung Cao.

KPIs are not a "magic wand" that can instantly solve all bottlenecks in public investment. However, if designed scientifically, transparently, and implemented rigorously, this tool will contribute to unblocking the flow of public investment capital, quickly bringing state resources into practice, forming practical infrastructure projects, and creating momentum for socio-economic growth and development.

Source: https://baothainguyen.vn/kinh-te/202606/coi-troi-cho-dong-von-dau-tu-cong-d0c2f8b/