Hanoi accelerates the disbursement of public investment funds to reach over 100%.

Representing Hanoi City were Central Committee member, Deputy Secretary of the City Party Committee, and Chairman of the Hanoi People's Committee Tran Sy Thanh; and members of the Standing Committee of the City Party Committee and Vice Chairmen of the Hanoi People's Committee: Nguyen Trong Dong and Duong Duc Tuan.

The meeting was conducted online, connecting to the People's Committees of the districts, counties, and towns.

Vice Chairman of the Hanoi People's Committee Nguyen Trong Dong reports at the working session. — Vice Chairman of the Hanoi People's Committee Nguyen Trong Dong reported at the meeting.

Hanoi needs to disburse more than 87 trillion VND in 2025.

Reporting on the implementation of the 2025 public investment plan, Vice Chairman of the Hanoi People's Committee Nguyen Trong Dong stated that the city's 2025 public investment plan, as assigned by the Prime Minister, is 87,130 billion VND, three times higher than the 2024 plan of 77,183 billion VND, accounting for 10.5% of the total national capital allocated by the National Assembly (829,365 billion VND).

The city has allocated 87,130 billion VND for public investment in 2025, matching the plan assigned by the Prime Minister . Of this, central government budget funds account for 16.5% of the city's total planned capital: ODA allocation is 2,060 billion VND, and domestic central government budget funds are 12,363 billion VND.

The city has developed detailed plans for the progress and disbursement of funds for each project; organized city-wide meetings on basic construction; held numerous thematic meetings; held weekly meetings on important projects; directed traffic flow management and shortened the time for processing administrative procedures, especially public investment procedures; and implemented "green lane" traffic flow management...

Accordingly, as of March 24th, Hanoi City had disbursed over 5,052 billion VND in public investment capital, reaching 5.8% of the plan. The city has assessed and identified issues and developed specific solutions to accelerate the disbursement rate of projects. It is expected that the disbursement of local budget funds for the entire year will reach 100%.

However, disbursing funds for projects using central government budget capital will face many difficulties. According to Nguyen Trong Dong, Vice Chairman of the Hanoi People's Committee, the biggest obstacle in project implementation is land clearance.

The city has 4 projects using central government budget funds; 62 out of 282 city-level projects and 31 out of 570 district-level projects using city budget funds are facing difficulties in land clearance. Some projects are subject to the regulations of two Land Laws, resulting in two different support policies.

For example, the Hanoi urban railway project, Line 2 (Nam Thang Long - Tran Hung Dao), and the Yen Xa wastewater treatment plant project are both behind schedule, failing to meet annual capital disbursement targets and requiring a postponement to the 2026-2030 period. This is due to slow land clearance, lengthy and complex procedures for adjusting investment policies, projects, and agreements; and the lack of established standards, regulations, norms, and unit prices for urban railways, making implementation difficult.

During the meeting, representatives from various departments and units of Hanoi City discussed specific difficulties and obstacles, and proposed solutions to the relevant ministries and agencies. For example, the pilot urban railway project in Hanoi, specifically the Nhon-Hanoi Station section, faced difficulties in signing the contract addendum for package CP06 (underground section) and adjusting the price of package CP03.

Investment preparation projects such as the Hanoi-Hoang Mai urban railway line 3.2 or urban railway line 5 involve lengthy and complex investment procedures, requiring input from many relevant units.

Overview of the work session. — A general overview of the working session.

Furthermore, some projects encounter obstacles in planning, determining road boundaries, assessing environmental impacts, and fluctuations in raw material prices. Meanwhile, projects using ODA funding face difficulties due to complex technology, differences in legal regulations, and international contracts…

Regarding solutions, the Hanoi People's Committee proposed that the Government promptly submit to the National Assembly a comprehensive amendment to the regulations in specialized laws, the Law on Public Investment, and the Law on State Budget, defining the responsibilities of local governments at all levels, and on that basis, transferring ongoing district-level projects to new units.

To ensure the continuity of capital allocation planning (avoiding interruptions between sessions of the City People's Council), the Government continues to research and submit to the National Assembly amendments to the Law on Public Investment in the direction of strengthening decentralization and delegation of power to People's Committees at all levels to manage capital plans (allocation of capital, adjustment of capital plans) according to practical requirements.

The management of public investment capital plans is changing towards allocating funds based on the actual progress of projects implemented monthly, instead of allocating sufficient funds to projects from the beginning of the year.

For nationally important projects, regional linkage projects, and ODA projects, the City People's Committee requests the Prime Minister to promptly approve the project proposals using ODA funds so that the city has a basis to implement the next steps.

Hanoi has been allocated a large amount of capital, but it is still modest compared to the needs.

In 2025, Hanoi aims to start construction on three bridges across the Red River (Tu Lien Bridge, Tran Hung Dao Bridge, and Ngoc Hoi Bridge), with Tu Lien Bridge scheduled to begin construction on May 19th.

To meet the above deadline, the Hanoi People's Committee requests the Government and the National Assembly to consider amending the Law on Bidding and related decrees to expedite investment preparation for key and urgent projects.

For the time being, the Standing Committee of the National Assembly has authorized the Hanoi People's Committee to apply the direct contracting method for all consulting and non-consulting packages of the three projects: Tu Lien Bridge, Tran Hung Dao Bridge, and Ngoc Hoi Bridge.

Regarding the Tu Lien Bridge project, the city proposed allowing the awarding of all contracts through direct negotiation; and permitting land acquisition and site clearance to be carried out as an independent project to be implemented first...

Regarding the route connecting Gia Binh Airport with the center of Hanoi, the city proposes that the Prime Minister promptly consider and direct the unification of the route plan and investment mechanism and method so that the Hanoi People's Committee and the Bac Ninh Provincial People's Committee can soon implement it.

Deputy Prime Minister Tran Hong Ha concludes the working session. Photo: Pham Linh

Concluding the working session, Deputy Prime Minister Tran Hong Ha emphasized that Hanoi's disbursement of public investment capital in the first quarter of 2025 was lower than the average. In reality, Hanoi has been proactive, but this is a preparatory phase; the period from now until the end of the year is the time for disbursement and accelerated progress.

Hanoi city is committed to disbursing funds at the highest possible rate, exceeding 95%. Considering the context and the issues raised during the meeting, Hanoi can achieve this. Hanoi has been allocated a large amount of capital, but it is still modest compared to the needs. The difficulties in disbursing public investment funds in Hanoi are only temporary and short-term; these must be resolved after April. Hanoi needs to strive to disburse over 100% of the planned capital, not just over 95%.

The Deputy Prime Minister acknowledged the proposals and recommendations of the Hanoi People's Committee and instructed the Ministry of Finance, the Ministry of Agriculture and Environment, the Ministry of Construction, and the Government Office to clearly define and propose to the Government to submit them to the National Assembly after the meeting.

Regarding ODA projects, the Deputy Prime Minister instructed the Ministry of Finance and the Ministry of Foreign Affairs to proactively work with the French embassy and ODA management agencies to expedite the signing of agreements.

Source: https://kinhtedothi.vn/ha-noi-but-toc-trong-giai-ngan-von-dau-tu-cong-de-dat-tren-100.html